The CEO of FTX believes that Bitcoin has no future as a payment system

Must Read

Harmony’s $100M Hack Was Due to a Compromised Multi-Sig Scheme, Says Analyst

Harmony’s Multi-Sig Exploited Polygon’s CSO Says, Harmony Protocol’s Founder Found Evidence That ‘Private Keys Were Compromised’

Uniswap Set To Add NFTs To Its Product Lineup With Latest Acquisition

On Tuesday, a popular crypto start-up and founders of a leading decentralized exchange of the name Uniswap...

Yuga Labs vs. Ryder Ripps: Decoding the impact of the lawsuit on the performance of ‘Apes’

Yuga Labs is the limelight again. However, this time around the NFT giant announced that it has...

According to Sam Bankman-Fried, the CEO of the crypto exchange FTX, bitcoin will not become a worldwide payment network. Because of its proof-of-work mining methodology, he called it inefficient and damaging to the ecosystem. However, he does not feel that BTC must die since it might function as a store of wealth akin to gold.

PoS Should Be Used in Payment Systems

Sam Bankman-Fried (SBF) recently slammed bitcoin for not being able to handle a large number of transactions at a low cost. BTC, or any other digital currency based on the proof-of-work (POW) mining mechanism, in his opinion, has no future as a viable payment system, saying that the Bitcoin network is not a payment system or a scaling system.

SBF believes that employing a proof-of-stake (POS) consensus mechanism and blockchain technologies may construct a viable payment network. As a result, transactions will be speedier and less costly, making them a good alternative for the general public:

“Things that you’re doing millions of transactions a second with have to be extremely efficient and lightweight and lower energy cost. Proof-of-stake networks are.”

Bitcoin là gì? 5 PHÚT để biết tìm hiểu có nên mua Bitcoin không

Ethereum is one cryptocurrency project that aims to transition from a PoW to a PoS mining algorithm. The “Merge” transformation should make it more ecologically friendly and dramatically reduce the network’s energy expenses. In the previous month, Ethereum’s top developer, Tim Beiko, anticipated that the transition would happen in a few months after June 2022.

SBF did not fully reject Bitcoin. He saw it as an asset, commodity, and store of value in the same way as gold does:

“I don’t think that means bitcoin has to go.”

When it comes to blockchain protocols that use a proof-of-stake mining approach, one might include Solana, which seems to be a favorite of Bankman- Fried’s since he often praises its benefits.

The CEO stressed Solana’s capacity to expend millions of transactions per second in November 2021. As a result, it has the potential to overtake Bitcoin and Ethereum as the most popular digital asset system.

Solana’s network went down at the start of 2022, causing alarm among its users and dealers throughout the crypto industry. Despite the problem, SBF remained positive, rating it higher than other blockchains.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Harmony’s $100M Hack Was Due to a Compromised Multi-Sig Scheme, Says Analyst

Harmony’s Multi-Sig Exploited Polygon’s CSO Says, Harmony Protocol’s Founder Found Evidence That ‘Private Keys Were Compromised’

Uniswap Set To Add NFTs To Its Product Lineup With Latest Acquisition

On Tuesday, a popular crypto start-up and founders of a leading decentralized exchange of the name Uniswap announced the acquisition of Genie,...

Yuga Labs vs. Ryder Ripps: Decoding the impact of the lawsuit on the performance of ‘Apes’

Yuga Labs is the limelight again. However, this time around the NFT giant announced that it has filed a lawsuit against old...

Anonymous vows to bring Do Kwon’s ‘crimes’ to light

Hacktivist group Anonymous has pledged to “make sure” Terra co-founder Do Kwon is “brought to justice as soon as possible” in regard...

SEC requests comments on the guidelines for ICO portals

To avoid conflicts of interest and clarify the rules of outsourcing, the Securities and Exchange Commission (SEC) asks the public for feedback...
- Advertisement -

More Articles Like This