(CTN News) – The founder of FTX, a cryptocurrency exchange, has reportedly stated that bitcoin is not suited to be a payments network and criticized the cryptocurrency for its inefficiency and environmental impact, according to the Financial Times.
As an alternative to the system, we can also get a “proof of stake” network, where participants can buy tokens that allow them to join the network. Those with more tokens can mine more coins.
Bitcoin Has No Future As Payments Network
FTX CEO Sam Bankman-Fried told FT that “proof of stake” networks would be required to evolve crypto into a payments network since they are cheaper and less power-hungry.
Ethereum, the second-largest cryptocurrency, has been working to move to this energy-intensive network.
Bankman-Fried also said he didn’t believe bitcoin has to go away as a cryptocurrency, and it might still have a future as “an asset, a commodity, and a store of value” like gold, according to the report by Biticodes.
Last week, Bitcoin reached its lowest level since December 2020 following the collapse of TerraUSD, a stablecoin.
FTX, which Bankman-Fried founded in 2019, was valued at $32 billion in a February funding round, and Bankman-Fried himself is worth $21 billion, according to Forbes.