FTX chief said bitcoin has no future as a means of payment
According to Sam Bankman-Fried, the asset is inefficient and has high environmental costs
16.05.2022 - 08:45
316
2 min
0
What’s new? Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, has criticized the use of bitcoin as a means of payment. In an interview for Financial Times, he listed the main drawbacks of the first cryptocurrency: inefficiency and high environmental costs.
News on the Financial Times website
What arguments did Bankman-Fried make? The bitcoin system of validating transactions is unable to scale and cope with the millions of transactions that would be required to make the cryptocurrency an effective means of payment. “The bitcoin network is not a payments network and it is not a scaling network,” Bankman-Fried added.
The 30-year-old billionaire also said that an alternative type of blockchain with a Proof-of-Stake (PoS) algorithm would be needed to create a functional crypto payments network. Using PoS would make transactions effective, easy, and less energy-intensive. Despite criticism of bitcoin, Bankman-Fried stressed that the asset has a place in the crypto market and a future as a store of value akin to gold.
What events happened before? Warren Buffett, the founder of Berkshire Hathaway, stated that he sees no value in the first cryptocurrency as it does not produce anything. In this, the billionaire noted that having some cryptocurrencies in the portfolio could provide an advantage if used for lending or as collateral.
What is known about FTX? It is a centralized cryptocurrency exchange for trading derivatives headquartered in the Bahamas. It was created in 2018 by trader Sam Bankman-Fried and programmer Gary Wang. As of 2022, the platform has more than one million registered users.
In 2022, Bankman-Fried was ranked as the second richest person in the crypto industry by Forbes. His fortune was estimated at $24 billion.
Useful material?
Telegram 
Twitter Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024
Cryptocurrency rates
-
Bitcoin
$98 654
BTC
+0.52%
-
Ethereum
$3 333.06
ETH
+5.94%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.41
XRP
+26.12%
-
Dogecoin
$0.387841
DOGE
+1.49%
-
Cardano
$0.865878
ADA
+9.88%
-
Bitcoin Cash
$486.89
BCH
-6.72%
-
Polkadot
$6.06
DOT
+7.76%
-
Stellar XLM
$0.286668
XLM
+20.31%
-
Litecoin
$89.81
LTC
-0.15%