CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$21,467.00
  • ethereum
    ETH$1,240.79
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Crypto Fund
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » FTX CEO Thinks Bitcoin Has No Future as a Payment System

    FTX CEO Thinks Bitcoin Has No Future as a Payment System

    Author: Dimitar Dzhondzhorov

    Last Updated May 16, 2022 @ 09:57

    According to Sam Bankman-Fried, bitcoin is similar to gold rather than a successful payment system.

    Sam Bankman-Fried – Chief Executive Officer of the crypto exchange FTX – argued that bitcoin will not emerge as a global payment network. He labeled it inefficient and harmful to the environment due to its proof-of-work mining model. However, he doesn’t believe BTC “has to go” as it could serve as a store of value similar to gold.

    Payment Systems Should Utilize PoS

    In a recent interview for the Financial Times, Sam Bankman-Fried (SBF) criticized bitcoin for being unable to process a large number of transactions at a cheap cost. In his view, BTC or any other cryptocurrency based on the proof-of-work (POW) mining model does not 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 blockchain protocols using a proof-of-stake (POS) consensus mechanism. Thus, transactions will be faster and relatively 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 cryptocurrency project working on switching from PoW to PoS mining model is Ethereum. The transition, known as “The Merge,” should make it more environmentally suitable and will significantly cut the network’s energy costs. Last month, Ethereum’s leading developer – Tim Beiko – predicted the shift will see the light of day in a few months – after June 2022.

    SBF did not completely reject bitcoin. He envisioned it to have a future as “an asset, commodity and a store of value” much similar to gold:

    ADVERTISEMENT

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

    Sam-Bankman-Fried
    Sam Bankman-Fried, Source: The Financial Times

    SBF Is Keen on Solana

    Speaking of blockchain protocols utilizing a proof-of-stake mining model, one should mention Solana, which seems to be among Bankman-Fried’s favorites as he often praises its merits.

    In November 2021, the CEO emphasized Solana’s ability to scale millions of transactions per second. As such, it could become the next most dominant digital asset protocol, surpassing even Bitcoin and Ethereum.

    At the beginning of 2022, Solana’s network suffered an outage that caused panic among its users and traders across the crypto community. Despite the issue, SBF remained bullish on it, classifying it as better than other blockchains.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • Washington DC. Source: TripAdvisor
      SBF-Funded Political Action Committee Vows to Bring an 'Orange Wave' in Washington
    • kingdom_cover
      Alameda Backs Metaverse Project The Kingdom in a $3.6M Funding Round
    • SamBankmanFried
      FTX CEO Sam Bankman-Fried Weighs in on Russian Sanction Violations
    Tags: Bitcoin Proof of Stake (PoS) Proof of Work (PoW) Sam Bankman-Fried (SBF)
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Dimitar Dzhondzhorov
    More posts by this author

    Dimitar got interested in cryptocurrencies back in 2018 amid the prolonged bear market. His biggest passion in the field is Bitcoin and he was fascinated with its journey. With a flair for producing high-quality content, he started covering the cryptocurrency space in late 2018. His hobby is football.

  • bitcoin
    BTC$21,467.00
  • ethereum
    ETH$1,240.79
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Over 33% of NFT Volume is Wash Trading: bitsCrunch CEO Interview

    Over 33% of NFT Volume is Wash Trading: bitsCrunch CEO Interview

    What’s Going on With Celsius Network and Why Is It a Huge Risk for Crypto (Opinion)

    What’s Going on With Celsius Network and Why Is It a Huge Risk for Crypto (Opinion)

    Institutions Are Definitely Here: ConsenSys’ Harriet Browning (Interview)

    Institutions Are Definitely Here: ConsenSys’ Harriet Browning (Interview)

    Binance Visa Card Guide: Read Before You Order

    Binance Visa Card Guide: Read Before You Order

    Bitstamp CEO JB Graftieaux: We Are Still Early (Interview)

    Bitstamp CEO JB Graftieaux: We Are Still Early (Interview)

    Okay Bears NFT Collection: The Complete Guide

    Okay Bears NFT Collection: The Complete Guide

    Our Ambition is to Become the Amazon of Crypto: Interview with Coinbase’s Guillaume Chatain

    Our Ambition is to Become the Amazon of Crypto: Interview with Coinbase’s Guillaume Chatain

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!