Mike Bankman-Fried, Chief executive officer and founding father of major crypto exchange FTX, and investor in Solana (SOL), was charged with misleading the general public because he overlooked important details while bashing Bitcoin (BTC). The Chief executive officer claims that his quotes were selected “very selectively” with a mainstream media outlet, noted for skepticism towards Bitcoin and crypto.
Within an interview using the Financial Occasions (Foot), Bankman-Fried stated the proof-of-work (Bang) consensus mechanism, which forces Bitcoin, can not be scaled to aid countless transactions, thus making the flagship cryptocurrency an inefficient way of payment.
“The Bitcoin network isn’t a payments network which is not really a scaling network,” he was quoted as saying within the article entitled “Bitcoin doesn’t have future like a payments network, states FTX chief.”
The Chief executive officer also promoted proof-of-stake (PoS)-powered blockchains, for example Solana, that endured multiple outages this season, stating that these systems are “very efficient and light-weight minimizing energy cost.”
Nonetheless, Bankman-Fried stated that Bitcoin continues to have the next as “an asset, an investment along with a store of value” much like gold.
Even though the Chief executive officer may be technically right, these statements came like a surprise with a within the crypto community, who noticed that Bitcoin is really a settlement layer that utilizes the fast-growing Lightning Network (LN), a layer 2 (L2) solution made to make Bitcoin transactions faster and cheaper, because the payment network. Competing blockchains, for example Ethereum (ETH), will also be using L2 scaling solutions.
Others known as Bankman-Fried’s comments “misleading” given that they made no reference to the Lightning Network, speculating that he or she is attempting to promote Solana, a network he’s heavily committed to.
However, the crypto millionaire later stated the Foot has selected his “words very selectively,” acknowledging that “BTC could be [offered] on lightning/L2s/etc.”
Meanwhile, at the end of 2021, once the Chief executive officer testified in the Digital Assets and the way forward for Finance: Comprehending the Challenges and Advantages of Financial Innovation within the U . s . States hearing, also, he required the chance to focus on the advantages of PoS over Bang, calling the previous a “low-cost, carbon-efficient” alternative.
Formerly, Bankman-Fried has additionally claimed that centralized Solana is preferable to decentralized Ethereum because it supports a lot of users and transactions and may accommodate mass adoption.
Find out more:
– Lightning Network Adoption at Exchanges keeps growing: For this reason It’s Great for Bitcoin
– Major Bitcoin & Crypto Companies Warn of ‘Extreme’ Risk in Proof-of-Stake Systems
– Ripple’s Professional Campaign Has ‘Zero Chance’ of Forcing Bitcoin to Proof-of-Stake, But Brace for additional Attacks
– ‘PoS Fanatics Attacking Bang are Actual Supervillains’, Kraken’s Powell States as US Politicians Charge
(Updated at 11:04 UTC by having an additional tweet.)