FTX CEO Sam Bankman-Fried is of the opinion that Bitcoin has no future as a payment network due to its inefficiency and high environmental costs.
Sam Bankman-Fried, founder of crypto exchange FTX, said that because the Bitcoin blockchain uses proof-of-work consensus to verify transactions, the engine of cryptocurrencies, Bitcoin, cannot scale to deal with the millions of transactions that will be needed and is an effective payment tool. He stated that he couldn't.
"The Bitcoin network is a payment and not a scaling network."
For many, Bitcoin is still seen by some crypto enthusiasts as a way to carry out daily transactions.
Countries like El Salvador and the Central African Republic have made Bitcoin legal means of payment. But recent research by academics in the US indicates that despite the introduction and encouragement of Bitcoin ATMs, Bitcoin is rarely used for everyday payments in El Salvador.
The 30-year-old billionaire Sam Bankman-Fried stated that an alternative blockchain or other technological innovation as proof-of-stake would be required to create a functional crypto payment network.
“Things you do millions of transactions per second need to be highly efficient, lightweight and lower energy costs. Networks with PoS make this possible.”
But despite his views on Bitcoin (BTC), Sam Bankman-Fried said that the world's largest digital asset still has a place in the crypto market and believes Bitcoin is a store of value.
Because of its criticisms about Bitcoin (BTC), Sam Bankman-Fried has garnered reactions from some users on social media. Among them was former Twitter CEO Jack Dorsey. In response to Sam Bankman-Fried, Jack Dorsey asked why he didn't mention the Lightning Network in his tweet. Jack Dorsey is known to be a staunch Lightning Network supporter.