• Wed. Jun 22nd, 2022

Billionaire FTX chief says bitcoin has no future as a payment network – FT

ByHazel R. Lang

May 16, 2022

Representation of the Bitcoin cryptocurrency is shown on a keyboard in front of binary code in this illustration taken September 24, 2021. REUTERS/Dado Ruvic/Illustration

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May 16 (Reuters) – The founder of cryptocurrency exchange FTX said bitcoin has no future as a payment network and criticized the digital currency for its inefficiency and high environmental costs, the Financial Times reported on Monday.

Bitcoin

An alternative to the system is called the “proof of stake” network, where participants can purchase tokens that allow them to join the network. The more tokens they have, the more they can mine. (https://tmsnrt.rs/39oVvfD)

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FTX Founder and CEO Sam Bankman-Fried told FT that “proof-of-stake” networks would be necessary to scale crypto as a payment network because they are cheaper and less power-hungry. .

Blockchain Ethereum, home to the second-largest cryptocurrency ether, has struggled to transition to this power-hungry network. Read more

Bankman-Fried also said he doesn’t believe bitcoin should become a cryptocurrency, and that it may still have a future as an “asset, commodity and store of value” like gold, according to The report.

Bitcoin hit its lowest level since December 2020 last week after the collapse of TerraUSD, a so-called stablecoin.

FTX, which Bankman-Fried co-founded in 2019, was valued at $32 billion in a February funding round, and Bankman-Fried itself is worth $21 billion, according to Forbes.

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Reporting by Shubham Kalia in Bangalore; edited by Uttaresh.V

Our standards: The Thomson Reuters Trust Principles.


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