The FTX CEO Believes BTC has no future as a payment system since it is similar to gold rather than a successful payment system so let’s find out more about it in today’s latest Bitcoin news.
Sam Bankman Fried, the FTX CEO believes BTC has no future as a payment system and will not emerge as a glboal payment network. He labeled the inefficient and harmful impact on the environment because of its proof of work mining model but he doesn’t believe BTC has to go as it could serve as a store of value much similar to gold. In a recent interview, SBF criticized bitcoin for being unable to process a bigger number of transactions at cheaper cost, and in his view, BTC or other crypto-based on the PoW mining model don’t have a future as an effective payment system:
“The Bitcoin network is not a payment network, and it is not a scaling network.”
SBF thinks that a functional payment network can be created by the blockcahin protocols using a PoS consensus mechansim so the transactions will be faster and inexpensive which makes them an appropriate choice for the broad society:
“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.”
One such crypto project working on moving from PoW to PoS mining model is Ethereum with the transition known as “The Merge” should make it environmentally suitable and will cut the network energy costs dramatically. Ethereum’s leading developer Tim Beiko predicted that the shift will see hte light of day in a few months after June 2022. SBF didn’t reject BTC entirely as he said that Bitcoin does have a future as an asset, a commodity, and a store of value similar to gold:
“I don’t think that means bitcoin has to go.”
Speaking of the blockchain protocols that utilize a PoS mining model, one should mention Solana which is among SBF’s favorites as he often praises its merits. The CEO outlined Solana’s ability to scale millions of transactions per second and could become the next most dominant digital asset protocol that will surpass even BTC and ETH. At the start of 2022, Solana’s network suffered an outage which caused panic among the users and trades in the crypto community but SBF remained bullish and classified it as better than other blockchains.
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