FTX CEO, Sam Bankman-Fried feels that bitcoin has no future as a payments system. He also discussed the inefficiencies of the network of Bitcoin and significant environmental costs. According to the FTX CEO, the major problem with Bitcoin is its inability to scale. He further claims that the Bitcoin blockchain’s Proof-of-Work algorithm is incapable of handling millions of transactions.
He considers that a Proof-of-Stake (PoS) network is necessary for establishing a working cryptocurrency payment network. The Ethereum blockchain has been working on just this. ‘The Merge’ update will be released in a few months by Ethereum developers as a transition to the PoS network.
FTX CEO concerned over Environmental Costs around bitcoin
El Salvador and the Central African Republic are the two nations that have made Bitcoin legal money in recent years.
Sam Bankman-Fried showed concerns about the Environmental issues around Bitcoin. He discussed how the Proof-of-Work Bitcoin network consumes a lot of electricity. Bitcoin uses more energy than numerous countries.
He added, “It must be the case that we do not expand this up to the extent where we finally pay 100 times more on mining energy expenditures as we do now.”
Carbon offsets are used by FTX to offset emissions, according to the CEO. This isn’t to imply that the FTX CEO believes Bitcoin has no place in the crypto world. Instead, Sam Bankman-Fried sees Bitcoin as Gold, “an asset, a commodity, and a store of value.”
Bitcoin prices as low as $30,000
The remarks of the FTX CEO came when Bitcoin was in the middle of a sharp correction and battling to hold at $30,000. Bitcoin has a market capitalization of $578 billion and is now trading at $29,557. If Bitcoin falls below the crucial levels of $28,000-$29,000, it is likely to fall below $22,000 and continue low.
