FTX CEO Thinks Bitcoin Has No Future as a Fee System

Sam Bankman-Fried – Chief Govt Officer of the crypto trade FTX – argued that bitcoin won’t emerge as a world cost community. He labeled it inefficient and dangerous to the setting because of its proof-of-work mining mannequin. Nevertheless, he doesn’t imagine BTC “has to go” because it may function a retailer of worth just like gold.

Fee Techniques Ought to Make the most of PoS

In a current interview for the Monetary Occasions, Sam Bankman-Fried (SBF) criticized bitcoin for being unable to course of numerous transactions at an affordable price. In his view, BTC or every other cryptocurrency based mostly on the proof-of-work (POW) mining mannequin doesn’t have a future as an efficient cost system:

“The Bitcoin community just isn’t a cost community, and it isn’t a scaling community.”

SBF thinks {that a} purposeful cost community might be created by blockchain protocols utilizing a proof-of-stake (POS) consensus mechanism. Thus, transactions will likely be sooner and comparatively cheap, which makes them an applicable selection for the broad society:

“Issues that you simply’re doing hundreds of thousands of transactions a second with must be extraordinarily environment friendly and light-weight and decrease vitality price. Proof-of-stake networks are.”

One such cryptocurrency undertaking engaged on switching from PoW to PoS mining mannequin is Ethereum. The transition, generally known as “The Merge,” ought to make it extra environmentally appropriate and can considerably lower the community’s vitality prices. Final month, Ethereum’s main developer – Tim Beiko – predicted the shift will see the sunshine of day in just a few months – after June 2022.

SBF didn’t utterly reject bitcoin. He envisioned it to have a future as “an asset, commodity and a retailer of worth” a lot just like gold:

“I don’t assume meaning bitcoin has to go.”

SBF Is Eager on Solana

Talking of blockchain protocols using a proof-of-stake mining mannequin, one ought to point out Solana, which appears to be amongst Bankman-Fried’s favorites as he typically praises its deserves.

In November 2021, the CEO emphasised Solana’s potential to scale hundreds of thousands of transactions per second. As such, it may change into the subsequent most dominant digital asset protocol, surpassing even Bitcoin and Ethereum.

At first of 2022, Solana’s community suffered an outage that triggered panic amongst its customers and merchants throughout the crypto neighborhood. Regardless of the difficulty, SBF remained bullish on it, classifying it as higher than different blockchains.

 

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