The founder of smart contract platform Cardano (ADA), Charles Hoskinson, believes Bitcoin (BTC) is primed to more than double its price over the coming months.
In an interview on the David Lin Report, Hoskinson says he thinks Bitcoin “will hit $250,000” before the end of this bull market.
According to Hoskinson, decentralized finance (DeFi) will be the main catalyst for the potential 122% rally for Bitcoin.
“And the big driver is going to be Bitcoin DeFi. The minute you can get yield and do stuff with your Bitcoin…. Bitcoin gets a yield. It’s a very attractive instrument because [of] its limited downside relative to all these other experimental things. And it has equivalent upside in many cases to other tokens.”
The Cardano founder says that over the next half a decade, Bitcoin’s total market cap could more than quadruple from the current level to $10 trillion, catalyzed by various financial products related to Bitcoin DeFi.
“That’s what’s going to be the key driver of getting Bitcoin over $10 trillion, because then structured financial products can offer yields there. They could be sliced and diced by Wall Street to be very safe and scored and rated. And then people just by proportion start including it like they do gold in their [Individual Retirement Account] IRAs and their 401ks and these types of things. And so the rulemaking will let you do it.
The minute that clarity is passed, and all the rulemaking comes in, Bitcoin will be treated like any other financial asset, for purposes of investment and taxes. And at that point, you will see a massive flow of money into it because it’s a hard asset like gold is.”
Bitcoin is trading at $112,672 at time of writing.
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