FTX Founder Sam Bankman-Fried does not see a future for Bitcoin as a Payments Network
May 19, 2022 9:48 AM
Founder of the top tier cryptocurrency exchange FTX, has given his take regarding the future of Bitcoin’s application. Bankman-Fried stated he does not see the possibility of Bitcoin working as a payments network, due to its limited capability for scaling to fulfill this task. Still, he believes it might turn “ an asset, a commodity, and a store of value.”
FTX Founder pick on Bitcoin as a Payments Network
FTX founding father Sam Bankman-Fried has given his opinion about where bitcoin is going and the real worth of its structure in the future. In an interview published by the Financial Times, Bankman-Fried condemned the perpetration of Bitcoin as a payments network. To him, the Bitcoin blockchain system will no way work as a day-to- day payments system for several reasons.
A sensed lack of scalability of the Bitcoin blockchain is one of them, and the alternate reason presented by the executive has to suit with the energy and environmental allegations of this hypothetical growth compared to other options. To Bankman-Fried, bitcoin for payments is akin to gold, in that it would be impracticable to use. He stated
First of all, it would be ridiculous and absurd we go to a store and pay with physical gold bars. It would be possibly precious. And I ’m sure it ’d be bad for the climate. He also declared that evidence-of- stake (PoS) networks would be more effective to complete these tasks, explaining Effects that you ’re doing millions of deals a alternate with (will) have to be extremely effective and featherlight and lower energy cost. Evidence of stake networks are.
Bankman-Fried believes that Bitcoin has other unique parcels that make it good as “ an asset, a commodity, and a store of value.”
However, some views differ from that of Bankman-Fried’s opinions. The commencement of the Bitcoin Lightning Network (LN), the alternate subcaste (L2) expansion protocol for Bitcoin that proposes veritably low sale costs, might be a result to the scaling problems that early blockchains like Bitcoin encounters during network congestion. This is the opinion of Paolo Ardoino, CTO of Bitfinex, who believes Lightning has the implicit to turn Bitcoin into a doable payment rail. He added.
Bitcoin’s Lightning Network is still arising to make manifest Satoshi Nakamoto’s forecast of a decentralized, peer-to- peer payment network. A case in point is El Salvador where the country’s relinquishment of bitcoin as legal tender has made the nation a laboratory for Lightning operation with global pots integrating the technology.