According to the Financial Times, the creator of cryptocurrency exchange FTX believes bitcoin has no future as a payment network and has attacked the virtual currency for its inefficiencies and hefty environmental costs.
Sam Bankman-Fried believes Bitcoin has no future as a payment network
According to one of crypto’s most powerful CEOs, Bitcoin has no future as a payment mechanism due to its inefficiencies and significant environmental costs.
The proof of work mechanism for confirming blockchain transactions, which underpins bitcoin, according to Sam Bankman-Fried, creator of the digital asset exchange FTX, is incapable of scaling up to deal with the large transactions required to make bitcoin a viable payment option.
Blockchain Ethereum has been attempting to migrate to this energy-intensive network, which contains the second-largest cryptocurrency, ether. According to the report, Bankman-Fried also stated that bitcoin 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.
Following the collapse of TerraUSD, a stablecoin, Bitcoin fell to its lowest level since December 2020 last week. According to Forbes, Sam Bankman-Fried is worth $21 billion, while FTX, which he co-founded in 2019, was estimated at $32 billion in a February investment round.
His remarks come after the fast-growing cryptocurrency sector was rocked by a brutal sell-off, with bitcoin down more than 35% since January and trading at its lowest possible level since late 2020. Some crypto fans still regard Bitcoin as a means of conducting ordinary transactions.
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