Bitcoin has no future as a payment network, warns the owner of one of the largest cryptocurrency exchanges

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Bitcoin has no future as a payment network, warns the owner of one of the largest cryptocurrency exchanges

Bitcoin it has no future as a payment network because of his inefficiency and their high environmental costsaccording to one of the most influential managers of the cryptocurrencies.

Sam Bankman-friedfounder of FTX cryptocurrency exchangesaid that he proof of work system [Proof of Work o PoW] for validate transactions on the blockchainon which is based the bitcoincant of scale to handle millions of transactions that will be needed for make cryptocurrency an effective means of payment.

The bitcoin network is not a payment network and it is not a scalable network.Bankman-Fried said.

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His comments came at a time when the cryptocurrency marketfast-growing, was affected by a massive sale what left to bitcoin with a fall of more than 35% since January, at its lowest level since the end of 2020.

Some enthusiasts of cryptocurrencies continue to consider bitcoin like a how to carry out daily transactions.

passes like The Savior and the Central African Republic they have adopted bitcoin as legal tender. However, recent research by academics in USA I discovered that bitcoin has hardly been used for daily payments in El Salvadordespite the deployment of ATMs bitcoin and other measures to encourage their use.

The 30-year-old billionaire, who has turned FTX in one of the largest digital asset exchanges in the worldSaid you’d need a alternative type of blockchain known as proof of participation [Proof of Stake o PoS]or other technological innovations, to create a functional paid crypto network.

Ethereal has been working to move to a point of sale systemwhat it pretends to be less intensive in energy use.

“The things with which they are made million transactions per second they have to be extremely efficient and light and have a lower energy cost. The networks point of sale they are,” Bankman-Fried said.

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His criticism of bitcoin they reveal the serious environmental concern that raises the amount of energy needed to run the systems of pow of the cryptocurrencies. Some European regulators have called for these systems to be banned due to their carbon emissions.

Bitcoin mining consumes more energy than many countries, including Norway and Swedenaccording to the Cambridge University Bitcoin Electricity Consumption Index.

“It has to be the case that we don’t escalate this to the point where, over time, we’re spending 100 times what we spend today on mining energy costs [de bitcoin]Bankman-Fried said.

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FTX has resorted to carbon offsets to neutralize the company’s emissions, which, according to Bankman-Fried, is worthwhile, but it is not a complete solution “because at some point you are left with nothing to offset.”

But despite his views on the bitcoinBankman-Fried said he continued to believe that the world’s largest digital asset have a place in cryptocurrency market.

“I don’t think that means the bitcoin have to disappear,” he said, adding that the cryptocurrency can still have a future like “an asset, a commodity, and a store of value” similar to gold.

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