Charles Hoskinson is confident that Ethereum, the second-largest cryptocurrency will exhaust its potential in late 2022 or early 2023.
August 11, 2021, | AtoZ Markets – In a recent interview with Bloomberg, Co-founder of the Cardano ecosystem and former Ethereum developer Charles Hoskinson shared his thoughts on the future of the Ethereum blockchain.
According to him, the project owes its success primarily to the youth, charisma, and wealth of its founder, Vitalik Buterin, and only then to technology. Support from ecosystem participants and businesses also plays an important role.
“Vitalik is very young. He uses his youth and money to implement ideas that he considers important to the ecosystem. In addition, a lot of people work for him. ConsenSys, for example, and other large companies with large staffs and tight wallets,” he explains.
Hoskinson was involved in the development of Ethereum, but left the project in the early stages and created his own blockchain - Cardano. Since then, he has been a frequent critic of ETH.
He had previously criticized the confusing architecture of the network and stated that the move to ETH 2.0 would lead the entire project to decline. According to him, the Ethereum 2.0 governance system will slow down development when the creators of the ecosystem retire.
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Ethereum burns bridges
Meanwhile, on August 5, the London hard fork took place on the Ethereum network, bringing the network one step closer to switching to a proof-of-stake consensus algorithm. As part of the fork, a mechanism was implemented to burn part of the commissions paid by users for transactions. According to the ultrasound money service, 20,000 coins were burned in five days. At the current exchange rate, this is more than $64 million.
Analysts are confident that this model will create a deflationary environment in the ecosystem, which will drive the value of ETH up.
Read also: Will Ethereum London Upgrade Affect Price?
ETH is ahead of Bitcoin in terms of growth rates
According to the resource CoinMarketCap, ETH has risen in price by more than 700% over the year. The second-largest cryptocurrency has more than doubled the return on Bitcoin, which has grown by 290% over the same period.
Read also: Ethereum Will Replace Bitcoin as a Store of Value – Goldman Sachs
At the time of this writing, ETH is trading at $3,219. During the day, the coin has risen in price by 2%. In a week - by 21%.
According to Bloomberg analyst Mike McGlone, if Bitcoin grew at the same rate this year, then the main cryptocurrency would already be worth more than $100,000.
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