TL;DR: Sam Bankman-Fried mentioned that he does not consider Bitcoin can work as a funds community, criticizing the excessive power prices of its proof-of-work algorithm and claiming it might’t maintain hundreds of thousands of transactions per second. He does, nevertheless, assume that it has potential as a retailer of worth.
In a Monday interview, crypto billionaire Sam Bankman-Fried mentioned that he does not see a future for Bitcoin as a funds community. Bankman-Fried is the founder and CEO of FTX, one of the widespread cryptocurrency exchanges on the planet.
The thirty-year-old billionaire criticized Bitcoin’s underlying proof-of-work system, used to confirm transactions, for its excessive environmental prices and inefficiency. He argued that the community is not able to dealing with hundreds of thousands of transactions per second. Nevertheless, he did point out that customers can switch Bitcoin to layer two cost protocols comparable to Lightning. He additionally famous that proof-of-stake networks remedy these points.
To be clear I additionally mentioned that it _does_ have potential as a retailer of worth.
The BTC community cannot maintain 1000’s/hundreds of thousands of TPS, though BTC could be xfered on lightning/L2s/and many others. https://t.co/7ghQzz7eXa
— SBF (@SBF_FTX) May 16, 2022
Switching Bitcoin over to a proof-of-stake algorithm could be no straightforward feat. As a reminder, Ethereum builders have been planning a shift to PoS for a number of years, though it has been met with a number of delays.
Whereas Bankman-Fried does not consider in Bitcoin as a viable forex for funds, he did point out that it has potential as an asset, a commodity, and a retailer of worth, just like gold.
Final week, the whole crypto market noticed an enormous crash after stablecoin Terra collapsed. Bitcoin has recovered barely since then however remains to be down over 50 % since its peak in November.
