Jack Dorsey unhappy with negative remarks about bitcoin made by FTX CEO

Jack Dorsey didn’t like FTX CEO Sam Bankman-Fried’s critical remarks about bitcoin’s viability as a payment system. The head of Block also got into an argument with him over his refusal to acknowledge Lightning’s achievements and the need for mining.

The conflict began when Bankman-Fried said in an interview with the Financial Times that bitcoin could not support a large volume of transactions. However, he recognized the Lightning network as a useful solution and cryptocurrencies as a means of savings.

Jack Dorsey took this statement with skepticism, while also asking the CEO why he didn’t mention Lightning Network in the first place.

And you didn’t mention Lightning Network because…?

The Lightning Network is the leading decentralized scaling solution for the bitcoin network, designed to provide the network with fast and cheap transactions that cannot be implemented on a basic level. Bitcoin wallet Chivo in El Salvador uses this network to provide instant and free cross-border money transfers from the United States.

Bitcoin payment processing company Strike is also using a Layer 2 solution. Soon it will allow large U.S. merchants to process both fiat and bitcoin payments through Lightning.

… Lighting was designed to speed up the movement of bitcoin in everyday transactions,” Dorsey added.

In his defense, the FTX CEO said he usually mentions Lightning when asked about it, but he was misquoted in the interview. He also expressed some interest in integrating Lightning into his exchange, which would allow traders to transfer and withdraw funds much faster and cheaper.

In the interview, Bankman-Fried also stated that bitcoin’s use of the Proof-of-Work (POW) consensus model is inefficient in terms of transactions. Dorsey stood by his position that mining is the “Holy Grail” of network security.

It is the simplest and most intuitive option…it can be trusted the most, given how decentralized it can be.

In addition, the head of Block reiterated his talking points from a letter he sent to the U.S. Environmental Protection Agency last month, where he opined that Proof-of-Stake blockchains are subject to “single points of failure.”