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FTX’s billionaire boss says that bitcoin has no future as a payment network – FT




The Bitcoin cryptocurrency representation is depicted on a keyboard in front of binary code in this illustration taken September 24, 2021. REUTERS / Dado Ruvic / Illustration

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May 16 (Reuters) – The founder of the cryptocurrency exchange FTX has said that bitcoin has no future as a payment network and criticized the digital currency for its inefficiency and high environmental costs, the Financial Times reported on Monday.

Bitcoin

An alternative to the system is called the “proof of stake” network, where participants can buy tokens that allow them to join the network. The more tokens they own, the more they can mine. (https://tmsnrt.rs/39oVvfD)

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FTX founder and CEO Sam Bankman-Fried told FT that “proof of effort” networks would be needed to develop crypto as a payment network since they are cheaper and less power-hungry.

Blockchain Ethereum, which houses the second largest cryptocurrency eater, has been working to move to this energy-intensive network. read more

Bankman-Fried also said he did not think bitcoin should go as a cryptocurrency, and it may still have a future as “an asset, a commodity and a stockpile” like gold, the report said.

Bitcoin reached its lowest level since December 2020 last week following the collapse of TerraUSD, a so-called stablecoin.

FTX, which Bankman-Fried co-founded in 2019, was valued at $ 32 billion in a financing round in February, and Bankman-Fried itself is worth $ 21 billion, according to Forbes.

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Reporting of Shubham Kalia in Bengaluru; editing of Uttaresh.V

Our standards: Thomson Reuters Trust Principles.



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