Why Bitcoin Price Will Hit $500,000

Charles Hoskinson, the founder of Cardano and a co-founder of Ethereum, has forecasted that Bitcoin could reach a price between $250,000 and $500,000

Bitcoin price is anticipated to reach new heights in the coming years, thanks to several key developments within the cryptocurrency's ecosystem, according to Charles Hoskinson, the founder of Cardano and a co-founder of Ethereum.

In a livestream on November 26, 2024, Hoskinson shared his bullish outlook for Bitcoin (BTC), attributing the potential surge to a combination of factors, including government discussions regarding a strategic Bitcoin reserve and the integration of decentralized finance (DeFi) capabilities into the network.

Bitcoin Price to Hit $500,000

Having commenced his cryptocurrency journey with Bitcoin, Hoskinson expressed renewed enthusiasm for the original cryptocurrency's future. “The revelation of this and after reviewing the technology realizing that it actually has a path to work reinvigorated my love of the ecosystem because Bitcoin went from a sleeping giant never to awaken in an innovation coma to an awakened giant,” he stated.

He highlighted the advancements enabled by Bitcoin's Taproot upgrade, which, together with technologies like BitVM and FairGate, is unlocking a degree of programmability that was previously unattainable on the Bitcoin network. These innovations are paving the way for the creation of a DeFi layer on Bitcoin.

Hoskinson went on to predict that DeFi within the Bitcoin ecosystem will surpass all other blockchain ecosystems in the next two to three years. “It is my belief that DeFi in the Bitcoin ecosystem will eclipse DeFi in all ecosystems in the cryptocurrency industry within 24 months to 36 months,” he asserted.

He attributed this anticipated dominance to Bitcoin's unparalleled scale and liquidity, noting “as good as Ethereum can be and Solana can be and Cardono can be, let’s be intellectually honest about this. Governments are talking about a strategic reserve of Bitcoin and Bitcoin alone it’s their entry point and perhaps in five or 10 or 15 years that dialogue will change.”

This factor, the Cardano founder predicts, will massively contribute to the Bitcoin price. “It is my belief that Bitcoin is going to go to a quarter million to half million dollars within the next 12 to 24 months because of the investment inflows and the great interest that has been achieved,” Hoskinson predicted.

Cardano x Bitcoin DeFi

Touching upon the potential impact of Bitcoin's DeFi space, Hoskinson emphasized the importance of ensuring Cardano's involvement. “One of the big strategic priorities for me in 2025 is making sure that Cardano doesn’t get left out of this story,” he said. He highlighted Cardano's suitability as a platform for developing hybrid applications that operate on both Bitcoin and Cardano networks.

Hoskinson detailed how Cardano could facilitate interoperability with Bitcoin through the use of wrapped BTC tokens on the Cardano blockchain, enabled by trustless bridge mechanisms and virtual machines like BitVM. These bridges would allow Bitcoin holders to participate in DeFi activities on Cardano without relinquishing custody of their assets or relying on centralized exchanges.

Acknowledging the Bitcoin community's preference for using Bitcoin exclusively, Hoskinson emphasized that any interoperability solutions must align with this ethos. “It’s very clear to me that that model must include and ought to include, has to include an option where you always pay with your Bitcoin. Other tokens pollute this narrative and, frankly speaking, will ensure the failure of the project,” he explained.

By leveraging technologies like Babel fees, Hoskinson aims to allow users to pay transaction fees in Bitcoin, maintaining a seamless experience for Bitcoin users engaging with DeFi on Cardano.

Hoskinson revealed ongoing collaborations with key figures in the space, including Sergio Lerner, known for his work on FairGate, BitVM, and BitVMx. He also mentioned the successful test of a Halo 2 verification on Cardano’s mainnet, a significant milestone demonstrating Cardano’s capability to handle advanced cryptographic proofs with minimal transaction fees.

“On the Cardano mainnet, thanks to Plutus V3, we tested our very first Halo 2 verification […] The transaction fee for this is just 2 ADA for a very large proof,” Hoskinson noted.

Looking ahead, Hoskinson outlined plans to upgrade Cardano's Lace wallet to support Bitcoin in 2025, enhancing interoperability and user experience. “The DApp store in Lace will enable this Bitcoin-style DeFi,” he said. He also expressed intentions to engage with other Bitcoin ecosystem participants, such as the Ordinals community, to foster collaboration.

Hoskinson concluded with a reaffirmation of his commitment to advancing Bitcoin and Cardano's interoperability: “We’re just going to get it done. We’re just going to figure it out one way or the other, and it’s a high priority for us.”

At press time, ADA traded at $0.9768.