Charles Hoskinson recently met with Argentina’s President Javier Milei to explore how blockchain technology can transform global economic and political systems. During his speech at Tech Forum Argentina, Hoskinson discussed the future of blockchain and expressed his belief that Cardano has the potential to surpass both Ethereum and Bitcoin. He shared an ambitious vision that many Bitcoin enthusiasts dismiss, not realizing they share a common goal but approach it differently. Rather than debating whether Cardano will outgrow Bitcoin, it’s more productive to embrace big ideas and remain open to all possibilities.
Charles’ Speech
In his speech, Charles Hoskinson noted that even though we have achieved unprecedented levels of productivity, education, and communication tools, the quality of our lives is still declining.
“It’s because the systems are broken. The money is no longer sound. We don’t trust each other as much as we used to and people don’t know what to believe or where to go. There’s a crisis of meaning in the world.”
Charles refers to blockchain as the most significant innovation in human history. He mentioned that current transnational organizations do not work well and cannot prevent wars and polarization of society.
“It’s the most meaningful and significant technology in the history of humanity because at the core of blockchain, what we’re trying to do, is solve just simply one thing. Trying to create a world where we can trust each other again.
We have the IMF. We have the World Bank. We have these transnational bodies and they’re all just going to figure everything out. And then what happened 20 years later 30 years later? We stopped trusting each other. We started going to war with each other and now billions of people are picking sides. Are we in the BRICS system or are we in the US system? “
Charles addressed the problem of the current social systems and sees blockchain as a solution.
“The reason why social systems do not have this guarantee is that there is no objective reality with them. What blockchain does by restoring trust is, it creates that objective reality for people. It creates a consensus about what happened, where did it happen, who did it happen to, the order in which it happened. And from that you can start rebuilding social political, and economic systems. And you can rebuild them in a way just like engineering that everybody in the world sees the same thing. And that is the most valuable advancement in human history because it’s the first time in human history that we all get to see and experience and trust the same thing.”
He mentioned that if you are dissatisfied with the current state, it is time to adopt technologies that solve the problem. However, the change will take decades.
“So if you’re unhappy with your currency, you’re unhappy with your political system if you’re unhappy with how governance has historically worked, if you’re skeptical of multi-trillion dollar companies that seem to own everything and control everything, maybe just maybe, you’re in the marketplace for new ideas and new systems. And if you happen to be the first adopters of those new ideas and new systems in 10 years, 20 years, 30 years, you wake up you’re the next America. You’re the next person on top. “
Charles believes that Cardano will be bigger than Ethereum and Bitcoin.
“In seven years time since Cardano launch, we went from nothing to an 11-figure network with millions of people and the largest research group in the world and the passion of young people. And in another decade’s time, we’ll be bigger than Ethereum. And in another decade’s time, we’ll be bigger than Bitcoin. In another decade’s time, the majority of governments in the world will run on our infrastructure because they trust it. That is what thinking in decades gives you, that is what thinking horizontally gives you, the curse of Silicon Valley for all the things.
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My hope with Cardano is that it could inspire the world to remember that one lesson. Through decentralization, it never dies. Through good governance, it always has the best ideas. And with a horizontal thinking of decade after decade, every decade you make progress. And every decade you get better. ”
People And Politicians Need To Think About Blockchain As A Solution
When a president of a major country meets with a blockchain project’s representative, it marks a significant step forward in adoption.
Bitcoin’s adoption in El Salvador has been disappointing, as President Nayib Bukele has pointed out. Most Salvadoran citizens do not use BTC for payments or as a store of value, and it hasn’t fundamentally changed their lives. Since Bitcoin became legal tender in September 2021, there hasn’t been substantial progress in state-level cryptocurrency adoption. Additionally, President Trump’s appearance at a Bitcoin conference was likely part of his campaign efforts.
Politicians are increasingly debating cryptocurrencies, but their focus is mainly on regulation and taxation. They do not view blockchain technology as a solution to current issues of trust, as Charles Hoskinson suggests. While some countries have embraced cryptocurrencies, their politicians often see them primarily as new investment assets, without any grand plans for leveraging the technology further.
New technologies have a profound impact on political systems. The Internet, for example, has enabled uncensored communication over long distances, playing a crucial role in toppling many dictatorial regimes. State infrastructure in both developed and some developing countries heavily relies on the Internet and its services.
Emerging technologies like blockchain and AI, as highlighted by President Milei, will be essential for building or upgrading state infrastructures.
Charles Hoskinson identified the underlying reason for this shift: a loss of trust in current systems. Issues such as the inability to effectively prevent corruption, the complexity and unreliability of audits, the inefficiency in removing incompetent politicians, and the desire for more efficient voting systems, like those in Switzerland, drive this need for change.
Blockchain is essentially a trust machine. This isn’t about Bitcoin vs. Cardano or any other cryptocurrency; it’s about leveraging this key feature to improve our living conditions.
Many Bitcoin enthusiasts mistakenly believe that fixing money alone will solve our problems. However, money and political systems are inextricably linked; one cannot function effectively without the other.
It’s unrealistic to think that using BTC alone can make someone a non-citizen or a global citizen. Similarly, improving trust in political or financial systems cannot rely on legacy financial systems and money printers.
Bitcoin enthusiasts are grappling with how to use BTC while maintaining their roles as citizens. They often wish to change governments alongside changing the monetary system but haven’t found effective solutions yet. Ironically, the answer lies right before them: blockchain technology. This trust machine simply needs further development and thoughtful application.
Bitcoin is designed to become the new digital gold, but its protocol isn’t suitable for much else. As Charles mentioned, the Bitcoin community has largely abandoned its focus on decentralization.
Cardano, on the other hand, is taking a different approach. It emphasizes gradual and safe innovation over decades, aiming to become the backbone of financial and political systems. Cardano prioritizes decentralization, including on-chain governance, over scalability. This is crucial for any protocol intended to serve as state infrastructure, independent of political influence and neutral.
Currently, the adoption of BTC as a medium of exchange seems unrealistic. State infrastructure on the blockchain must enable the creation of state money with fixed, immutable rules. The sound money of the future might not necessarily be BTC; it could be BTC used as collateral for an algorithmic stablecoin. Or it can be ADA and many other native coins.
Future money must be integrated with state infrastructure. If money is to be decentralized, so must the state infrastructure, electoral systems, and authorities. This doesn’t mean the state will be just a protocol without politicians or officials. Instead, it means that certain rules, laws, or agreements will exist on the blockchain to ensure their integrity, immutability, and history.
Control of systems needs to be returned to the people to restore trust. Frustration with current systems often arises because individuals lack the tools to effect change. Electing politicians every few years is an inadequate mechanism for system control.
Bitcoin enthusiasts should recognize that quality of life is influenced by more than just money. Factors such as law enforcement, transparency, system fairness, fair compensation for work, access to new opportunities, freedom, corruption prevention, and accountability all play crucial roles.
Charles’ speech about Cardano potentially surpassing Bitcoin ignited debates on social networks, with most discussions focusing on market capitalization. However, the market cap doesn’t reflect the true potential of technology to impact society. If Cardano, or any other blockchain, becomes the backbone of government infrastructures, a tool for transparent elections, citizen control, minting state money, and other assets, its market capitalization will undoubtedly be much higher than it is today. Whether it surpasses Bitcoin’s market cap is irrelevant; what truly matters is the positive change it brings to society.
