SBF does not see Bitcoin becoming a payment network, lampoons its energy consumption

Sam Bankman-Fried (SBF), the CEO and laminitis of starring crypto speech FTX,  said successful a caller interview with the Financial Times that helium does not deliberation Bitcoin has a aboriginal arsenic a outgo network. 

SBF continued that the biology interaction of Bitcoin mining, alongside the information that the coin is “inefficient,” would number against it successful the agelong run.

PoS networks are the aboriginal of payments

SBF said integer currencies moving connected impervious of involvement networks similar Solana, Avalanche, and others are the aboriginal of outgo networks. 

He added that these networks already person the vantage of little vigor depletion and cheaper costs. So, they could beryllium forced to germinate into the prime web for crypto payment.

In his words,

The Bitcoin web is not a payments network, and it is not a scaling network. Things that you’re doing millions of transactions a 2nd with person to beryllium highly businesslike and lightweight and little vigor cost. Proof of involvement networks are.

In 2021, Avalanche laminitis Emin Gün Sirer said that Bitcoin could go obsolete arsenic newer blockchains similar Ethereum, Solana, and others person aggregate use-cases.

In his view, Bitcoin’s “speed,” alongside the information that the blockchain does not big astute contracts, makes it hard for decentralized applications to beryllium built connected top. 

SBF believes these shortcomings would let Bitcoin to “be taken implicit by different systems that are growing.”

Bitcoin is simply a store of value

However, SBF didn’t wholly disregard Bitcoin. He believes the crypto king has a aboriginal arsenic “an asset, a commodity and a store of value.”

SBF’s presumption is not wholly surprising; immoderate crypto assemblage members besides deliberation that the flagship integer currency is much of a store of worth than a outgo option.

The billionaire besides rehashed the accustomed disapproval against Bitcoin, saying that the assemblage has to enactment to avoid 

Spending 100 times arsenic overmuch yet arsenic we are contiguous connected vigor costs for mining.

Meanwhile, Greenpeace, a non-profit biology organization, called for a change to the Bitcoin statement exemplary successful a run tagged “Change the Code, not the Climate” successful March.

However, the Bitcoin assemblage reacted negatively to the campaign, saying that changing the coin’s codification would person a ripple effect connected the network’s architecture and jeopardize its security.