FTX Chief executive officer sees no future in Bitcoin payments, community fires back

Mike Bankman-Fried, the founding father of crypto exchange FTX, has belittled the efficiency of Bitcoin (BTC) like a payment network, simply to meet heavy backlash in the crypto community.

Throughout an interview using the Financial Occasions, Bankman-Fried fueled ecological concerns connected using the Bitcoin network’s mining consensus proof-of-work (Bang) and claimed it isn’t scalable enough to support countless transactions.

He recommended for using proof-of-stake (PoS) mining consensus rather and claimed it is best suited to blockchain payment systems. He stated:

“Things that you’re doing countless transactions another with need to be very efficient and light-weight minimizing energy cost. Evidence of stake systems are.”

Bankman-Fried comments resonated using the recent calls for an entire ban on Bang by several millionaire lobbyists comprising Ripple co-founder and many other ecological groups. However, Bitcoin proponents happen to be positively combating the continuing narration calling for something new in the code from the Bitcoin network’s mining consensus.

Related: Wanting to work: Bitcoin change to proof-of-stake remains unlikely

The kind of Jack Dorsey have previously managed to get obvious that PoS is much more centralized and fewer secure than Bang.

The crypto community wasn’t extremely pleased with FTX CEO’s recent comments. Many claimed the Bitcoin network isn’t supposed to have been a repayment network, but instead funds one and layer-2 (L2) solution, like the Lightning Network, t behave as the primary payment gateway. One user authored:

“Either SBF or Foot laying here. What goes on to L2 (Lightning Network)? The Bitcoin Lightning Network handles as much as 1,000,000 transactions per second!”

Others advised him from the high centralization and concurrent shutdowns of PoS systems for example Solana (SOL). One user authored:

“Thanks god we’ve Soylana that people can switch on / off almost every other week!”

Another user on Reddit authored:

“He does not possess a friggin’ clue what he’s speaking about (or even the journalist interviewing him does not). Scaling is not related to the consensus formula and therefore whether it’s Bang or POS is totally irrelevant towards the scaling issues.”

The FTX Chief executive officer required to Twitter to obvious the environment round his comments and stated he also spoken concerning the Bitcoin network’s potential like a store of worth. He stated:

“To be obvious I additionally stated it comes with potential like a store of worth. The BTC network can’t sustain thousands/countless TPS, although BTC could be xfered on lightning.”

The Bang versus PoS debate began this past year once the Ethereum network outlined its intend to proceed to the PoS mining consensus. The kind of Elon Musk fueled the sentiment that BTC must use more clean energy to become a viable choice. However, in 2022, the controversy appears to possess shifted perfectly into a complete change of mining consensus for that BTC network.

Latest stories

You might also like...