Charles Hoskinson, the CEO of IOG and creator of Cardano (ADA), has shared his thought on the current situation in the market and the crypto ecosystem.
In a YouTube live video titled “Thoughts on the Market and the Ecosystem”, Hoskinson discussed the significant influence of Bitcoin (BTC) on the whole cryptocurrencies in the market.
The creator of Cardano stated that this dominance was more obvious in 2017/2018 compared to 2020/2021 when things in the market started to become more interesting. He said the most part of 2021 has seen Bitcoin drastically losing its usual market dominance to others.
Hoskinson said people have started to differentiate a proof of stake (PoS) from proof of work (PoW), which now has an impact on the trend of prices in the crypto market.
The mathematician said work is going neck and neck to build amazing engines that will process billions and even trillions of transactions on a yearly basis. He added that this financial operating system will be social, institutional, Fortune 500, and will inevitably run nation-states.
Charles Hoskinson noted:
“For a long time our industry has been this way. 2017/2018, if Bitcoin goes everybody goes up if Bitcoin goes down everybody goes down, it doesn’t matter what technology you have, what you have accomplished, the deals you have done, the announcement you have made. For the most part, this market has been driven in this direction.
“And 2020/2021 has been very interesting. This is really the first time that we have noticed significant kind of cyclic movement, where Bitcoin dominance has fallen tremendously. It has gone down up to 43% the last time I checked and that’s based on the percentage of all the totality of market cap that Bitcoin owns relative to everything else.
“And we have also seen that institutional preferences have been unilateral with Bitcoin… Actually, people have started to differentiate a proof of stake (PoS) from proof of work (PoW) and we have started to see separation of things. It’s actually a pretty amazing thing.
“We are going to get it done as an industry… We all work neck and neck and build these amazing engines that are going to process billions of transactions every year, if not more. Containing collectively trillions of dollars of value.
“We are future-proving programmable finance and this financial operating system is going to be social, institutional, and Fortune 500. It’s going to run nation-states at some point. It’s inevitable.”