FTX CEO sees no future in Bitcoin payments, community fires back



FTX CEO Sees No Future In Bitcoin Payments, Community Fires Back

FTX CEO Sees No Future In Bitcoin Payments, Community Fires Back

Sam Bankman-Fried, the founding father of crypto trade FTX, has criticized the effectivity of Bitcoin (BTC) as a fee community, solely to satisfy heavy backlash from the crypto group.

FTX CEO Sees No Future In Bitcoin Payments, Community Fires Back

Throughout an interview with the Monetary Occasions, Bankman-Fried fueled environmental considerations related to the Bitcoin community’s mining consensus, proof-of-work (PoW), and claimed it is not scalable sufficient to accommodate thousands and thousands of transactions.

FTX CEO Sees No Future In Bitcoin Payments, Community Fires Back

He advocated for the usage of proof-of-stake mining consensus as an alternative and claimed it’s higher suited to blockchain fee networks. He stated:

FTX CEO Sees No Future In Bitcoin Payments, Community Fires Back

“Issues that you just’re doing thousands and thousands of transactions a second with need to be extraordinarily environment friendly and light-weight and decrease vitality price. Proof of stake networks are.”

FTX CEO Sees No Future In Bitcoin Payments, Community Fires Back

Bankman-Fried feedback resonated with the current calls for a whole ban on PoW by a bunch of billionaire lobbyists comprising Ripple co-founder and several other different environmental teams. Nonetheless, Bitcoin proponents have been actively preventing towards the continuing narration calling for a change within the code of the Bitcoin community’s mining consensus.

FTX CEO Sees No Future In Bitcoin Payments, Community Fires Back

Associated: Desperate to work: Bitcoin change to proof-of-stake stays unlikely

FTX CEO Sees No Future In Bitcoin Payments, Community Fires Back

The likes of Dorsey have already made it clear that PoS is extra centralized and fewer safe than PoW.

The crypto group was not more than happy with FTX CEO’s current feedback. Many claimed the Bitcoin community just isn’t meant to be a fee community, however relatively a settlement one and layer-2 options such because the Lightning Community act as the primary fee gateway. One person wrote:

“Both SBF or FT mendacity right here. What occurs to L2 (Lightning Community)? The Bitcoin Lightning Community handles as much as 1,000,000 transactions per second!”

Others reminded him of excessive centralization and concurrent shutdowns of PoS networks reminiscent of Solana. One person wrote:

“Thanks god we’ve got Soylana that we are able to change on and off each different week!”

One other person on Reddit wrote:

“He would not have a friggin’ clue what he’s speaking about (or the journalist interviewing him would not). Scaling has NOTHING to do with the consensus algorithm and therefore whether or not it’s POW or POS is totally irrelevant to the scaling points.”

The FTX CEO took to Twitter himself to clear the air round his feedback and stated that he additionally talked concerning the Bitcoin community’s potential as a retailer of worth. He stated:

“To be clear I additionally stated that it does have potential as a retailer of worth. The BTC community cannot maintain 1000’s/thousands and thousands of TPS, though BTC may be xfered on lightning.”

The PoW vs PoS debate began final yr when the Ethereum community outlined its plan to maneuver to the PoS mining consensus. The likes of Elon Musk fueled the that BTC wants to make use of extra clear vitality to be a viable possibility. Nonetheless, in 2022, the controversy appears to have shifted in the direction of a whole change of mining consensus for the BTC community.



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