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CEO of cryptocurrency exchange FTX thinks that Bitcoin has no future as a payments network

TL; DR: Sam Bankman-Fried stated that he does not think Bitcoin can work as a payments network, slamming the high energy expenses of its proof-of-work algorithm and declaring it can’t sustain countless deals per second. He does, nevertheless, believe that it has prospective as a shop of worth.

In a Monday interview, crypto billionaire Sam Bankman-Fried stated that he does not see a future for Bitcoin as a payments network. Bankman-Fried is the creator and CEO of FTX, among the most popular cryptocurrency exchanges on the planet.

The thirty-year-old billionaire slammed Bitcoin’s underlying proof-of-work system, utilized to validate deals, for its high ecological expenses and ineffectiveness. He argued that the network isn’t efficient in dealing with countless deals per second. He did point out that users can move Bitcoin to layer 2 payment procedures such as Lightning. He likewise kept in mind that proof-of-stake networks resolve these concerns.

To be clear I likewise stated that it _ does _ have possible as a shop of worth.

The BTC network can’t sustain thousands/millions of TPS, although BTC can be xfered on lightning/L2s/etc. https://t.co/7ghQzz7eXa

— SBF (@SBF_FTX) May 16, 2022

Switching Bitcoin over to a proof-of-stake algorithm would be no simple accomplishment. As a suggestion, Ethereum designers have actually been preparing a shift to PoS for numerous years, although it’s been consulted with numerous hold-ups

While Bankman-Fried does not think in Bitcoin as a practical currency for payments, he did point out that it has possible as a possession, a product, and a shop of worth, comparable to gold.

Last week, the whole crypto market saw an enormous crash after stablecoin Terra collapsed. Bitcoin has actually recuperated a little ever since however is still down over 50 percent considering that its peak in November.

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