Cardano's founder doesn't believe that Bitcoin has what it takes to become the world reserve currency.
Charles Hoskinson stated in a recent interview that he doesn't think Bitcoin would become the world reserve currency. According to the Cardano founder, a cryptocurrency with smart contract features would become the global reserve currency.
Hoskinson believes that Cardano or the likes of Ethereum would become the world reserve currency. A global reserve currency must offer services like smart contracts, metadata standards, and improved throughput that complete enormous transactions per second.
According to the Cardano founder, Bitcoin's scarcity comes from a high cost of production. He stated that;
"If you produce paintings and one you have to paint by hand while the other you can do with the machine and they both look identical, and the demand is the same for both, you are just spending a thousand times more effort to do one versus the other."
Hoskinson talked about Bitcoin's massive energy usage, adding that the cryptocurrency industry should focus on efficient alternatives with less energy consumption.
While Bitcoin doesn't have smart contract features at the moment, it could be integrated soon. Block (formerly known as Square) CEO Jack Dorsey has previously stated that his company is working on adding decentralised finance features to the Bitcoin ecosystem.
This would imply the Bitcoin blockchain would have a smart contract and similar features. Bitcoin remains the leading cryptocurrency in the world, accounting for more than 40% of the total cryptocurrency market cap.
The cryptocurrency market has been underperforming over the past few days. The total cryptocurrency market cap currently stands around $1.7 trillion, down from the $2 trillion recorded last week.
Bitcoin is trading around the $42k region, losing more than 2% of its value over the past 24 hours. ADA, the native token of the Cardano ecosystem, is up by less than 1% so far today and is currently trading at $1.05.