FTX CEO Prefers PoS Chains to Bitcoin for Payment

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Sam Bankman-Fried caused a stir on social media following remarks about Bitcoin’s inability to efficiently support millions of transactions per second. He believes, however, that the flagship cryptocurrency can serve as a store of value. FTX CEO Sam Bankman-Fried earlier this week weighed in on the Bitcoin utility discussion. The crypto entrepreneur pointed out that the idea that Bitcoin could facilitate payments in the future is misguided. In a recent interview with Financial Times, Bankman-Fried explained that Bitcoin lacks the desired measure of scalability to achieve the adoption as a large-scale payment network. “The things you perform with millions of transactions per second must be extremely efficient, lightweight and low energy cost. Proof-of-stake networks are “, he said. PoS in favor of PoW Bringing into play the energy usage issues that have plagued Bitcoin due to its proof-of-work consensus mechanism, the CEO of FTX pointed out that Bitcoin also presents the risk of further energy consumption. higher than what mining consumes today. “We need to let’s not increase that to the point where we end up spending 71 times more than today in energy costs for mining.” However, he did not entirely dismiss the world’s first digital asset in terms of capital of market. In particular, he noted that Bitcoin could still act as a store of value like gold. The FTX chief added that there could be user cases beyond that – referring to Bitcoin as an asset or a commodity. As expected, SBF’s comments were not well received by Bitcoin devotees, who went wild. Some have responded to Bankman-Fried’s argument by referring to the Bitcoin Lightning Network which handles up to 1 million transactions per second. The CEO of FTX had to come back and clarify his remarks. “To be clear, I I also said it had potential as a store of value. The BTC network cannot support thousands/millions of TPS, although BTC can be on lightning/L2/etc”, he wrote in a tweet later. The FTX CEO’s comments come barely a month after the Central African Republic (CAR) became the second country to adopt Bitcoin for everyday payments. The post FTX CEO Prefers PoS Chains to Bitcoin for Payment.

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