Here's Why Bitcoin Will Dominate Decentralized Finance
Charles Hoskinson, the founder of Cardano, believes that the world of cryptocurrency will see significant changes in the next few years. He predicts that decentralized finance (DeFi) based on Bitcoin will outshine all other DeFi platforms.
Bitcoin is undergoing rapid changes. In a recent YouTube appearance on November 27, Hoskinson expressed his thoughts on the evolution of Bitcoin. He remarked that Bitcoin has transformed from a resting giant into a powerful force for innovation, now four times larger than Ethereum and Solana combined.
This shift is largely due to increasing interest from institutions and governments treating Bitcoin as a strategic asset. Hoskinson thinks this trend, along with new DeFi features, will push Bitcoin prices to unprecedented levels.
He insists that widespread use of DeFi on Bitcoin is unavoidable, mainly because of its unmatched liquidity and massive scale in the cryptocurrency market.
To support this vision, Hoskinson introduced a significant innovation: the “DeFi mode” on the Cardano network. This new protocol will enable Bitcoin holders to engage in the DeFi sector while keeping their private keys safe.
The system converts Bitcoin into tokens on Cardano, allowing access to decentralized exchanges and investment products that generate returns. In October, the Cardano team announced the launch of the Grail protocol, which connects the two blockchains directly.
This infrastructure development is a major step toward creating DeFi applications that are backed by Bitcoin's security, while also maintaining its core role as a safe store of value.
In summary, Bitcoin-based DeFi has the potential to set new standards in decentralized finance, merging Bitcoin's strong security with the flexibility offered by new protocols. This advancement could represent a crucial moment in the growth of the cryptocurrency ecosystem.