Bitcoin has no future according to the CEO of this crypto exchange

Bitcoin (BTC) is doomed, says Sam Bankman-Fried, CEO and founder of crypto exchange FTX. In an interview, the billionaire estimated that the crypto queen will not be able to establish herself as a true means of payment.

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Bitcoin, the first cryptocurrency on the market, is often presented as the currency of the future by its proponents. Advocates believe that digital currency will gradually replace fiat currencies, such as the euro and dollar, in the era of instant online exchanges. Many countries have also chosen to make Bitcoin their national currency. This is the case of El Salvador and the Central African Republic.

Not surprisingly, many people criticize this thesis and claim that bitcoin is not an efficient method of payment, especially due to its highly volatile value. In recent years, bankers, central bankers and politicians have done barbs Dean of Cryptocurrency. Critics also come from some of the individuals involved in the world of digital assets.

This CEO of the Cryptocurrency World Doesn’t Believe in the Future of Bitcoin

During an interview with our colleagues from the Financial Times, Sam Bankman FriedThe CEO and founder of cryptocurrency exchange FTX, did not break words about the King of Bitcoin. The billionaire, whose exchange is growing, believes that “Bitcoin has no future as a payment network due to its inefficiency and high environmental costs.”.

Sam Bankman-Fried points first Proof of work or proof of work. This is the process of securing transactions recorded on the blockchain. This protocol is responsible for the inviolability and flexibility of the Bitcoin network. Too secure, the network suffers from the alleged inability to “Dealing with the millions of transactions that would be required to make the token an effective means of payment,” The Financial Times confirms.

“Bitcoin is not a payment network and it is not an expansion network”, summarizes Sam Bankman-Fried. However, there are many Bitcoin network overlays, such as lightning network, to facilitate large-scale exchanges. This is the solution chosen by El Salvador, the first country to adopt BTC as its national currency.

The FTX founder also regrets that proof-of-work takes a lot of power. According to an analysis by The New York Times, the Bitcoin network consumes 91 TWh of electricity annually, or 0.5% of global electricity consumption. To secure blockchain transactions, mining farms rely on powerful computers, Asics, that run continuously. Many environmental NGOs, such as Greenpeace, are calling for Bitcoin to abandon Proof of Work.

On the same topic: Why is the cryptocurrency market panicking after the fall of stablecoins

FTX CEO Recommends Other Cryptocurrencies Instead

To develop an efficient and functional payment network, Sam Bankman-Fried . prefers Cryptocurrency proofsuch as Ethereum in the near future, or in other protocols. “Things with millions of transactions per second need to be very efficient, lightweight, and cost-effective. Proof of Stake networks”explains Sam Bankman-Fried. “There will come a time until the point where we spend 100 times more than we spend today on the energy costs of mining.” FTX CEO warns.

Sam Bankman-Fried’s interview sparked outrage on social media. On Twitter, the billionaire wanted to categorize the statements reported by the Financial Times. This was explained by the founder of FTX “The BTC network cannot support thousands/millions of transactions, although BTC can be transferred across layers like the Lightning Network.”. Add : “To be clear, I also said that it has potential as a store of value.” In an article in the Financial Times, Sam Bankman-Fried emphasized that Bitcoin’s flaws should not lead to its abandonment.“I don’t think that means bitcoin has to go.”says the 30-year-old billionaire.

Source: Financial Times

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