Bitcoin to $500K? Cardano Founder Lays Out His Bold Vision and DeFi Integration Plans

Cardano founder Charles Hoskinson has set an ambitious long-term price target for Bitcoin, projecting it could reach between $250,000 and $500,000. Speaking at the recent Bitcoin conference, Hoskinson painted a compelling picture of Bitcoin’s evolution from its grassroots origins to a future ecosystem valued at $10 trillion.

In addition to his bullish forecast, Hoskinson shared critical insights on Bitcoin’s foundational limitations and outlined how new infrastructure could enable its interaction with decentralised finance (DeFi) ecosystems, without compromising Bitcoin’s core principles.

Bitcoin’s Journey from Forums to Global Finance

During his keynote, Hoskinson reflected on Bitcoin’s humble beginnings. He recalled how early adopters mined Bitcoin using basic setups and participated in peer-to-peer trades through platforms like PayPal and Bitmitt, long before centralised exchanges existed.

He emphasised the contrast between those early systems and the massive mining rigs now showcased at global conferences. Despite the sophistication of today’s equipment, he noted, the early miners often accumulated more Bitcoin than their modern counterparts.

Hoskinson also acknowledged the industry’s expansion, now estimated to serve over 550 million users worldwide, further underscoring how Bitcoin has grown into a global economic force.

Core Principles That Limit Bitcoin DeFi—And How to Solve Them

Hoskinson discussed three fundamental rules that have defined Bitcoin since its inception:

Exclusivity to Bitcoin – The network recognises only the BTC asset.
All Transactions in BTC – Fees and rewards are paid solely in Bitcoin.
Yield in BTC Only – No integration of external tokens or assets for DeFi rewards.

While these principles safeguard Bitcoin’s purity, they also hinder its capacity to evolve into a DeFi-compatible platform. However, Hoskinson proposed a solution: introduce modular infrastructure that respects Bitcoin’s rules while enabling modern DeFi capabilities.

He highlighted wallet innovations and smart contract layers being developed to bridge the gap. In particular, he described wallet upgrades that allow users to toggle between standard and DeFi modes, providing them with seamless access to DeFi features while staying within Bitcoin’s technical and philosophical boundaries.

Cross-Chain Collaboration: Cardano and Bitcoin Join Forces

Hoskinson introduced real-world demonstrations of Bitcoin’s growing DeFi functionality. One standout example involved a swap from Bitcoin to Minswap tokens using the Lace Wallet, developed by Input Output Global (IOG). The process utilised Babel fees from Fluid Tokens, allowing users to complete DeFi transactions directly inside the wallet, without leaving the Bitcoin network.

He praised this model for preserving user custody and maintaining security. These trust-minimised architectures ensure Bitcoin’s DeFi activities remain native and controlled.

Looking ahead, IOG plans to implement the Cardinal Protocol, which will allow USDC stablecoins to bridge from Bitcoin into Cardano’s ecosystem. According to CTO Romain Pellerin, the system will eventually support other derivatives such as Litecoin and Dogecoin, boosting cross-chain liquidity and expanding Bitcoin’s functional reach.

Cardano and XRP DeFi Integration Now Underway

In a surprising turn, Hoskinson also confirmed that Cardano is actively working on integrating with the XRP Ledger to enable DeFi capabilities. He disclosed that Cardano aims to build smart contract functionality for XRP, with the potential to unlock over $140 billion in value.

This collaboration comes after years of tension between the Cardano and XRP communities. However, Hoskinson acknowledged that both sides have reconciled and are now working together, with Ripple (the largest contributor to the XRP Ledger) playing a central role.

Plans include implementing a computational layer on the XRP Ledger to support core DeFi features such as borrowing and lending. This advancement would transform XRP from a payment-focused asset into a full-fledged DeFi participant.

The Future of Interoperable Crypto Networks

Hoskinson’s broader strategy involves building an interconnected ecosystem where Bitcoin, Cardano, XRP, and other networks can exchange assets and services seamlessly. The Cardano team continues to promote smart contract tooling through Plutus and Aiken, which support multi-chain compatibility.

Developers at IOG, including Riley and Brandon, are now exploring advanced environments like BitVMX, built on RISC-V architecture, to lay the foundation for a future-proof, cross-chain DeFi ecosystem.