FTX Founder: "Bitcoin Inefficient... Has Disqualifications as a Payment Method"

"Bitcoin Can Have a Future as an Asset, Not Just as a Cryptocurrency"

Sam Bankman-Fried, CEO and founder of the cryptocurrency exchange 'FTX,' stated that Bitcoin has no future as a payment network.
[Image source=Yonhap News]

[Asia Economy Reporter Kang Wooseok] Sam Bankman-Fried, CEO of the cryptocurrency exchange 'FTX,' pointed out that Bitcoin has no future as a payment network.

According to a report by the Financial Times (FT) on the 16th, Bankman-Fried said in an interview with FT that Bitcoin is inefficient and environmentally costly, making it unsuitable as a payment network.

He cited the proof-of-work (PoW) mechanism underlying Bitcoin as having scalability limitations and consuming a lot of electricity in operation.

In fact, in Europe and other regions, there are ongoing discussions about effectively banning cryptocurrencies that use the proof-of-work method, arguing that cryptocurrencies must meet minimum environmental sustainability standards.

Bankman-Fried stated that proof-of-stake (PoS) is cheaper and consumes less electricity than proof-of-work, making it more suitable for cryptocurrencies to evolve into payment networks.

Currently, Ethereum, the second largest cryptocurrency after Bitcoin, is in the process of transitioning to the proof-of-stake method.

Bankman-Fried also argued that Bitcoin does not necessarily have to be used as a 'cryptocurrency' but could have a future as an asset, commodity, or store of value, similar to gold.