Charles Hoskinson, the founder of Cardano (ADA), has made critical comments about the early days of Bitcoin (BTC). It reflects the high degree of centralization that Bitcoin experienced after its creation. Even Bitcoin maximalists, people who are convinced of the value and superiority of Bitcoin over other cryptocurrencies, are not spared from Hoskinson.
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The centralized launch of Bitcoin
Hoskinson recently expressed his criticism of Bitcoin in a YouTube video on December 1st. The CEO of Input Output Global (IOG), the company behind the development of Cardano, explains that the Bitcoin network was extremely centralized after its launch. He says that Satoshi Nakamoto, the pseudonymous founder of Bitcoin, initially had full control of the blockchain.
Satoshi Nakamoto mined the very first transaction block, also known as the, on January 3, 2009 “Genesis Block” called. After that, there were no more miners attempting to solve mathematical puzzles using computing power in exchange for BTC rewards. Satoshi Nakamoto therefore had full control over the network, which of course contradicts the concept of decentralization for which Bitcoin is now often praised.
Among other things, Hoskinson said the following:
“Some of the Bitcoins issued during the mining process were completely centralized, as only one actor mined them and had full control over the network and could have made arbitrary decisions at any time to change the network in any direction.”
Bitcoin maximalists are also criticized by Hoskinson, particularly for their limited and often hypocritical thinking. He criticizes their unwillingness to acknowledge that other projects, such as Bitcoin in the beginning, may go through a centralization phase before becoming decentralized.
The current state of the Bitcoin network is also criticized
Earlier this week, Hoskinson also took a look at Bitcoin, this time focusing on the current level of centralization. “If you subpoena and attack three different companies, you can do a 51 percent attack on Bitcoin because that’s how computing power works,” Hoskinson said.
He therefore finds it not at all surprising that BTC has a “ccomplete passage gets from the American Securities and Exchange Commission (SEC) when it comes to whether Bitcoin is sufficiently decentralized to be considered a security.
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