Following the recent revelation of BlackRock’s application for a spot Bitcoin ETF, Cardano founder Charles Hoskinson has found himself at odds with Bitcoin maximalists. Divergent opinions on the potential effects of BlackRock’s involvement in the crypto space have prompted a contentious debate among the crypto community in response to the announcement.
When BlackRock submitted paperwork to the U.S. Securities and Exchange Commission (SEC) outlining its plans to provide institutional investors with a regulated vehicle to gain exposure to Bitcoin’s price movements without directly holding the digital asset, news of the asset management giant’s interest in developing a Bitcoin Spot ETF broke.
Charles Hoskinson responded to the news by voicing his scepticism and worries. He denounced the enthusiastic support of Bitcoin maximalists for BlackRock’s participation in the cryptocurrency market on Twitter. He said, “Bitcoiners defending Blackrock is all you need to know about their ethics, mental state, and greed.”
Hoskinson claimed that such backing was naive, cautioning that the proposed Bitcoin ETF might bring in a large amount of new capital and ultimately lower the value of Bitcoin.
Hoskinson’s comments offended Bitcoin maximalists, who vehemently favour the idea. They contend that BlackRock’s entry into the cryptocurrency market will significantly validate Bitcoin and increase its acceptance by the general public, opening the door for even more adoption and recognition. Maximalists view this as a favourable development that might help not just Bitcoin but also other strong projects like Cardano, which Hoskinson himself founded.
Hoskinson reinforced his viewpoint in reaction to the debate with Bitcoin maximalists, underlining his worries regarding the possible repercussions of BlackRock’s engagement. He said, “I’m old enough to remember Mike Hern and Gavin being driven out. I’m also old enough to remember Jimmy Song pushing for the US government to ban all crypto except Bitcoin. Sorry maximalists are fanatics that want to harm us all.”
The argument over the ramifications of BlackRock’s proposed Bitcoin Spot Trust continues, and the cryptocurrency community is still split on the issue. While Hoskinson maintains his skepticism and warns against the eventual devaluation of the asset, Bitcoin maximalists see it as a positive step toward further acceptance. Only time will tell how this conflict of viewpoints will affect the cryptocurrency market’s future and how traditional financial institutions and the decentralized world will interact.
Meanwhile, in the news related to the Cardano founder, Hoskinson is funding the Galileo Project’s search for a crashed unidentified flying object or space entity near the coast of Papua New Guinea, led by Harvard astronomer Avi Loeb and his student Amir Siraj.
