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FTX CEO believes Bitcoin has no future as a payment network

16 May 2022 : 14:03
2 min read
  • SBF believes that Bitcoin has no future as a payments network.
  • He cited inefficiency and high environmental costs as key factors.
  • SBF added that Bitcoin does have the potential as a store of value

The founder and CEO of the crypto exchange giant FTX, Samuel Bankman-Fried, has made a shocking statement about the world’s largest cryptocurrency, Bitcoin.

SBF: Bitcoin can’t be used as a payment network

SBF believes that Bitcoin has no future as a payments network because of its inefficiency and high environmental costs. Although, he added that it does have the potential as a store of value but is incapable of sustaining “thousands/millions of TPS, although BTC can be transferred on lightning/L2s/etc.”

Notably, Bitcoin is created through a “proof of work” process in which computers “mine” the currency by solving complicated puzzles. Large amounts of electricity are required to power these computers. The “proof of stake” network is an alternative to the system, in which players buy tokens that allow them to join the network. They can mine more tokens the more they hold.

According to a Financial Times report, FTX Founder stated that “proof of stake” networks would be essential to advance crypto as a payments network because they are less expensive and less energy-consuming. Ethereum, the second-largest cryptocurrency behind bitcoin, has been attempting to migrate to this energy-intensive network.

According to the report, Bankman-Fried also stated that BTC did not have to become a cryptocurrency and that it might still have a future as “an asset, a commodity, and a store of value” like gold.

FTX CEO agrees with Elon Musk

SBF is not the first big name that has attacked Bitcoin amid its adoption as a legal tender in El Salvador and the Central African Republic. Previously, Tesla founder and the richest man on the planet, Elon Musk, has also stated that BTC is not suitable for transactions for its slow transfers and higher network fees. He also compared BTC with meme token Dogecoin, which he thinks is perfect for day-to-day transactions. SBF reiterated what Elon said at the time:

Bitcoin is at its base level, suitable for maybe a store of value.

Anisha Pandey

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