16 May 2022 07:48, UTC.
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Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, believes that Bitcoin is not suitable for daily payments because of its low scalability and negative environmental impact.
In an interview with the Financial Times, Sam Bankman-Fried said that Bitcoin was originally created as a decentralized alternative to the traditional financial system. But now, as other blockchains have emerged, Bitcoin is moving away from its original purpose. According to Fried, Bitcoin is not suitable for payment transactions on a large scale. Bitcoin’s blockchain, which uses the Proof-of-Work (PoW) consensus algorithm, cannot quickly process millions of transactions worldwide, and it would cause irreparable damage to the environment. Therefore, an alternative blockchain based on Proof-of-Stake (PoS) is needed to create a functional payment network.
“The Bitcoin network is not suitable for payments. You might as well pay for purchases in stores with gold bullion. It would be ridiculous, ridiculous and incredibly expensive. And I’m sure it would be bad for the environment,” the FTX executive reasoned.
He added that bitcoin isn’t going anywhere because it serves much better as a store of value, and many cryptocurrency enthusiasts agree with his view. For example, Galaxy Digital founder Michael Novogratz believes that investing in bitcoin can keep investors’ money from depreciating government currencies. However, the governments of El Salvador and the Central African Republic, where bitcoin is legalized, have high hopes for it as a means of payment.
Earlier, Tesla and SpaceX CEO Elon Musk expressed a similar point of view on bitcoin transactions. He believes that people have to pay high commissions when paying with bitcoin, so DOGE is the best way to make payments.
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