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 cost community, solely to satisfy heavy backlash from the crypto group.

Throughout an interview with the Monetary Occasions, Bankman-Fried fueled environmental issues related to the Bitcoin community’s mining consensus, proof-of-work (PoW), and claimed it isn’t scalable sufficient to accommodate tens of millions of transactions.

He advocated for using proof-of-stake mining consensus as an alternative and claimed it’s higher suited to blockchain cost networks. He mentioned:

“Issues that you just’re doing tens of millions of transactions a second with must be extraordinarily environment friendly and light-weight and decrease power price. Proof of stake networks are.”

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

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

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

The crypto group was not very happy with FTX CEO’s current feedback. Many claimed the Bitcoin community isn’t meant to be a cost community, however quite a settlement one and layer-2 options such because the Lightning Community act as the primary cost gateway. One consumer 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 similar to Solana. One consumer wrote:

“Thanks god we have now Soylana that we are able to change on and off each different week!”

One other consumer on Reddit wrote:

“He does not have a friggin’ clue what he’s speaking about (or the journalist interviewing him does 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 mentioned that he additionally talked in regards to the Bitcoin community’s potential as a retailer of worth. He mentioned:

“To be clear I additionally mentioned that it does have potential as a retailer of worth. The BTC community cannot maintain hundreds/tens of millions 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 sentiment that BTC wants to make use of extra clear power to be a viable choice. Nevertheless, in 2022, the talk appears to have shifted in the direction of an entire change of mining consensus for the BTC community.