Charles Hoskinson Predicts Bitcoin DeFi Will Dominate Crypto Industry

Charles Hoskinson, the founder of Cardano, has predicted a revolution in decentralized finance (DeFi). In the next two to three years, he thinks the DeFi ecosystem for Bitcoin will surpass that of all other cryptocurrency platforms. He discussed Bitcoin’s potential, price forecasts, and a novel method of integrating BTC into DeFi without depending on centralized exchanges in a November 27 YouTube video.

“Bitcoin has been a big part of my life,” Hoskinson stated. “The only reason I’m here today is because Bitcoin exists.” Reflecting on the challenges of Bitcoin in its early days, he acknowledged its growth into a significant force, adding, “Bitcoin went from a sleeping giant… to an awakened giant that is four times the size of Solana and Ethereum combined.”

He emphasized the scale and liquidity advantages Bitcoin brings, predicting that “DeFi in the Bitcoin ecosystem will eclipse DeFi in all ecosystems… within 24 to 36 months.”

Bridging Bitcoin to DeFi on Cardano

Hoskinson introduced a new model for enabling Bitcoin holders to participate in DeFi, using Cardano’s network. Through a feature he described as “DeFi mode,” users can bridge Bitcoin to a wrapped token on Cardano. This process unlocks DeFi opportunities, such as trading on decentralized exchanges, using yield-generating instruments, and retaining custody of private keys.

The Cardano-Bitcoin bridge, based on the Grail protocol, represents a significant step forward. Announced in October by Cardano’s development team, this bridge could facilitate Bitcoin-secured DeFi applications, according to the protocol’s specifications.

Hoskinson also pointed to Bitcoin’s growing recognition among governments exploring strategic reserves. He boldly predicted Bitcoin’s price could rise to $250,000 or even $500,000 within the next two years, driven by increased investment inflows.

“Simply put, Bitcoin is the store of value for the internet, and it will remain in that role for the foreseeable future now that it has a DeFi layer,” Hoskinson concluded.