TL;DR: Sam Bankman-Fried said that he would not deem Bitcoin can work as a payments network, criticizing the excessive vitality costs of its proof-of-work algorithm and claiming it can’t sustain thousands and thousands of transactions per 2nd. He does, then again, mediate that it has potential as a retailer of value.
In a Monday interview, crypto billionaire Sam Bankman-Fried said that he would not peep a future for Bitcoin as a payments network. Bankman-Fried is the founder and CEO of FTX, one of the most popular cryptocurrency exchanges on the earth.
The thirty-year-outdated billionaire criticized Bitcoin’s underlying proof-of-work machine, ragged to examine transactions, for its excessive environmental costs and inefficiency. He argued that the network is not capable of handling thousands and thousands of transactions per 2nd. Nonetheless, he did point out that users can transfer Bitcoin to layer two payment protocols such as Lightning. He also noted that proof-of-stake networks solve these points.
To be clear I also said that it _does_ have potential as a retailer of value.
The BTC network can’t sustain thousands/thousands and thousands of TPS, although BTC can be xfered on lightning/L2s/etc. https://t.co/7ghQzz7eXa
— SBF (@SBF_FTX) May 16, 2022
Switching Bitcoin over to a proof-of-stake algorithm may perhaps be no easy feat. As a reminder, Ethereum builders have been planning a shift to PoS for several years, although it be been met with several delays.
While Bankman-Fried would not deem in Bitcoin as a viable currency for payments, he did point out that it has potential as an asset, a commodity, and a retailer of value, similar to gold.
Last week, your whole crypto market saw a massive crash after stablecoin Terra collapsed. Bitcoin has recovered impartial a little since then but is calm down over 50 percent since its peak in November.
