Charles Hoskinson predicts that Bitcoin will overtake other platforms in the decentralized finance (DeFi) ecosystem in the next 2-3 years.
Cardano’s ADA token gained 7.86%, demonstrating strong investor confidence in DeFi’s growth.
How Cardano’s innovative DeFi model could reshape Bitcoin’s role in the crypto ecosystem, and we take a look at what this development means for investors.
As Bitcoin’s volatility continues to grow, Cardano co-founder Charles Hoskinson has drawn attention with a bold prediction, saying Bitcoin could reach $500,000 in the next two years.
This prediction was shared in a recently released video. Hoskinson said:
“I believe Bitcoin will reach $250,000 to $500,000 in the next 12 to 24 months because there are investment flows and increasing interest.”
Hoskinson made another bold prediction for decentralized finance (DeFi) in the Bitcoin ecosystem. He predicts that in the next two to three years, Bitcoin will emerge as the leading DeFi platform, leaving others behind.
This vision positions Bitcoin as a strong player in the DeFi space and creates excitement about a major evolution in the crypto market.
Hoskinson said:
“I started in the Bitcoin space and I loved Bitcoin. Bitcoin has an important place in my life and my sole purpose here is for Bitcoin to exist.”
However, he also expressed his disappointment with the use of Bitcoin in the early stages:
"Bitcoin was a sleeping giant for a long time. Now it is an awakened giant four times bigger than Solana and Ethereum combined."
Hoskinson added:
“DeFi in the Bitcoin ecosystem will surpass all DeFi platforms in the crypto industry in 24 to 36 months, with this size and liquidity.”
Hoskinson’s vision for Bitcoin centers on its role as a “store of value for the internet,” a role that is further enhanced by the addition of decentralized finance (DeFi) capabilities.
Hoskinson notes that Bitcoin has traditionally lacked native DeFi functionality and proposes a new model over the Cardano network, whereby Bitcoin holders can “enable DeFi mode.”
This involves bridging Bitcoin to DeFi ecosystems via its wrapped token on Cardano, allowing users to trade on decentralized exchanges and leverage income-generating instruments.
Crucially, this approach will allow users to maintain full control over their private keys, allowing them to leverage the potential of DeFi while ensuring the security of their assets.
Hoskinson’s proposed model aims to make Bitcoin a much more flexible and versatile asset in the decentralized finance (DeFi) space, expanding Bitcoin’s role as a mere store of value and allowing users to take an active role in DeFi ecosystems.