Author: Martin Young, CoinTelegraph; Translator: Zhu Tao, Jinse Finance
Cardano founder Charles Hoskinson believes that decentralized finance in the Bitcoin ecosystem will surpass all other crypto DeFi within the next two to three years.
He has touted the potential of Bitcoin DeFi, made bold price predictions, and highlighted a new model for bridging BTC without using centralized exchanges.
"I started getting into the Bitcoin space, I like Bitcoin. Bitcoin has always been a big part of my life, and the only reason I'm here today is because of Bitcoin," he said in a YouTube video released on November 27.
He expressed dissatisfaction with early Bitcoin usage, but stated that "Bitcoin has gone from a sleeping giant that will never wake up from an innovation coma, to an awakened giant whose scale is four times the sum of Solana and Ethereum," and added:
"DeFi in the Bitcoin ecosystem will surpass DeFi in all ecosystems in the crypto industry within 24 to 36 months, and that's just because of scale and liquidity."
Hoskinson also pointed to the ongoing discussions among governments around Bitcoin strategic reserves, and said Bitcoin itself is their entry point:
"I believe that due to the influx of investment and the massive interest already generated, Bitcoin will rise to $250,000 to $500,000 in the next 12 to 24 months."
"In simple terms, Bitcoin is the internet's store of value, and because it has a DeFi layer, it will continue to play that role in the foreseeable future," he added before describing a new model for bringing DeFi functionality to Bitcoin through the Cardano network, which he described as a "DeFi mode".
Charles Hoskinson discusses Bitcoin DeFi. Source: YouTube
He said that users can "enable DeFi mode" by bridging Bitcoin to wrapped tokens on Cardano. This allows Bitcoin holders to participate in the DeFi ecosystem, trade on decentralized exchanges, use yield-generating tools, and custody their own private keys.
The Cardano development team announced the Cardano-Bitcoin bridge based on the Grail protocol in October.
According to the specifications of the underlying protocol, this bridge could be the first step in providing DeFi applications secured by Bitcoin.
