Bitcoin doesn’t have a future as a payments network, according to Sam Bankman-Fried, founder and chief executive at crypto exchange FTX and one of the most high-profile executives in the crypto industry.
Bankman-Fried said that the proof-of-work system, which bitcoin
was built on to validate blockchain transactions, wasn’t capable of being scaled up to deal with millions of transactions, according to the Financial Times.
“The BTC network can’t sustain thousands/millions of TPS (transactions per second),” although bitcoin can be transferred on other blockchains layered on top of the original one, such as the Lightning network, Bankman-Fried tweeted on Monday.
“Things that you’re doing millions of transactions a second with (will) have to be extremely efficient and lightweight and lower energy cost. Proof of stake networks are,” Bankman-Fried told the Financial Times.
Proof-of-stake is another mechanism to validate transactions, which consumes less energy. Ethereum
is transitioning from proof-of-work to proof-of-stake.
Still, bitcoin has potential as “an asset, a commodity and a store of value,” Bankman-Fried told the Financial Times.
Bitcoin has dropped more than 55% from its all-time high in November to below $30,000 on Monday, according to CoinDesk data. Ether is down more than 58% from its record high to around $2,000.
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