Sam Bankman-Fried, the founder and CEO of crypto exchange FTX believes Bitcoin has no future as a payment network. According to a report from the Financial Times on Monday, Bankman-Fried is convinced that the largest cryptocurrency in the world is still hugely inefficient and poses major problems for the climate. According to the founder of FTX, Bitcoin’s Proof-of-Work consensus mechanism is the biggest limitation.
Sam Bankman-Fried Forget the Lightning Network?
Countries like El Salvador and the Central African Republic have already made Bitcoin legal tender to make Bitcoin transactions more popular. However, in El Salvador, the use of Bitcoin as a means of payment remains scarce, despite the country trying to improve the infrastructure for it.
Bankman-Fried seems to focus mainly on the basic blockchain of Bitcoin with his comments. Which he later confirmed in a message in which he writes that Bitcoin can scale via the Lightning Network and so-called ‘second-layer’ technologies. Furthermore, the CEO of FTX indicates that Bitcoin’s climate footprint is currently not in order.
To combat that, FTX has already launched projects that attempt to mine with solar energy. A way of mining that is becoming increasingly popular within the Bitcoin mining industry. In certain places, Bitcoin is having a hard time in politics because of the story that mining is bad for the climate.