CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
  • Market Updates
  • BTC Analysis
  • ETH Analysis
  • XRP Analysis
  • Interviews
CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
Home » Crypto News » SBF Clears the Air on Bitcoin’s Potential for Payments 

SBF Clears the Air on Bitcoin’s Potential for Payments 

Author: Andrew Throuvalas

Last Updated Jun 16, 2022 @ 16:36

The FTX CEO firmly believes that Bitcoin, as an asset, can scale for widespread payments using layer 2 technologies

Getting your audio player ready...

FTX CEO Sam Bankman-Fried (SBF) issued another statement on Thursday regarding his opinion on Bitcoin’s scaling potential. He believes the network itself is not designed to handle massive volumes, but that various neighboring technologies can help Bitcoin – as an asset – be used for global trade.

Asset Can Scale, Network Cannot

As tweeted by the CEO, BTC can “absolutely” function as a payment asset, through the lightning network, “wrapped Bitcoin”, or other layer 2 technologies. Bitcoin’s base-layer, however, is unable to scale for global payments.

The Bitcoin network has only ever been able to process approximately 7 transactions per second. That pales in comparison to the throughput of legacy payment systems like VISA, which boast speeds of up to 1700 transactions per second.

Were Bitcoin used for global payment processing like VISA or Mastercard in its current form, it would be plagued by slow processing and high transaction costs. Ethereum has already run into a similar problem, facing significant blockchain bloat as it manages stablecoin transfers and smart contract processing.

That’s why various scaling solutions have emerged that don’t directly involve changes to either blockchain. For Ethereum, that includes layer two technologies and side chains such as Optimism and Polygon respectively.

Bitcoin also has “side-chains,” such as Liquid network and Rootstock. Each of these chains is tied to the original blockchain in some way – most notably in their use of Bitcoin as their base asset (LBTC / RBTC). They’re also designed with increased functionality similar to Ethereum – like smart contracts and tokenization – alongside enhanced scalability.

However, the reliance of such solutions on more centralized, bridge-based solutions has led some to be skeptical of their security. Instead, the most popular long-term scaling solution for Bitcoin right now is the lightning network.

SBF’s Disregard of Lightning

The lightning network is a scaling solution that allows for virtually instant and free Bitcoin payment settlement off-chain. It is currently used in El Salvador and is being developed by companies such as Strike and Jack Dorsey’s Block.

Dorsey criticized SBF weeks ago for having failed to mention lightning as a scaling solution for Bitcoin in an interview with the Financial Times. SBF claimed that his comments only seemed exclusive due to selective editing and interview troubles.

The CEO stated that he will be entering another similar interview today, and therefore chose to clarify his Bitcoin position in advance.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Tags: Bitcoin Lightning Network Sam Bankman-Fried (SBF)
Enjoy reading? Share with your friends
Facebook Twitter LinkedIn Telegram

About The Author

Andrew Throuvalas
More posts by this author

Andrew is a content writer with a passion for Bitcoin. He became familiar with Bitcoin back in 2013, but began diligently studying the blockchain technology and its economic implications in 2017. Ever since, he’s believed in the network’s power to replace the current global monetary system, and provide financial freedom to billions worldwide.
Contact: Medium | LinkedIn | Twitter

Join Our Community

FacebookX YouTubeTelegram


Editorials
How to Trade on Hyperliquid: The Ultimate Guide (Step-by-Step Walkthrough)

How to Trade on Hyperliquid: The Ultimate Guide (Step-by-Step Walkthrough)

11 Best Meme Coins to Watch in June 2025

11 Best Meme Coins to Watch in June 2025

7 Best Meme Coin Presales to Watch in June 2025

7 Best Meme Coin Presales to Watch in June 2025

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

11 Best Crypto Presales to Consider in June 2025

11 Best Crypto Presales to Consider in June 2025

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

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!
Footer Logo
About
Advertise on CryptoPotato
About Us | Contact Us | Careers
Editorial Policy
Terms of service | Privacy Policy | GDPR
More Sections
IEO List | Evaluations
Airdrops
Scholarship
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 - 2025
Scroll to top
One Daily Email Can Change Your Crypto Life.

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

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