Cryptocurrency exchange platform FTX’s founder Sam Bankman-Fried has declared that the world’s most popular cryptocurrency Bitcoin has no future being a payments network. The billionaire founder cited reasons such as high environmental costs and inefficiency as a stance for his opinion of Bitcoin. The billionaire’s declaration comes amid a new trend of fluctuations in the crypto market which sent Bitcoin plummeting below $30,000 erasing the gains of the previous year.
Sam Bankman-Fried spoke about an alternative to Bitcoin’s system called the “proof of stake” network. In this system, people can buy tokens that give them membership into the network, and the more tokens they add to their pile, the more they can mine. As reported by Financial Times, the FTX boss explained that “proof of stake” networks are cheaper and less power-hungry and would be required as a payments network over Bitcoin in the future.
The FTX boss also added that he didn’t believe Bitcoin had to go as a cryptocurrency. He said that the cryptocurrency may still have a future as an asset, a commodity, or even a store of value just like gold.
It is relevant to know that the Ethereum blockchain, the network behind the world’s second-largest cryptocurrency Ether, has been ramping efforts to move to this energy-intensive network.
Founded in 2019 by Sam Bankman-Fried, FTX is headquartered in the Bahamas and is incorporated in Antigua and Barbuda. As of July 2021, FTX had an average of $10 billion of daily trading volume and has more than a million users. It operates in the US as FTX US, a separate exchange available to people in the US. The exchange was valued at $32 billion after a funding round held in February. The exchange is one of the most popular in the world rivaling other platforms like Binance, Coinbase, Crypto.com, etc.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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