FTX CEO Sam Bankman-Fried questioned Bitcoin’s ability to become a popular payments system due to the inefficiency and high environmental costs of its blockchain. The Financial Times reports.
The executive pointed to the inability to scale the network to ‘millions of transactions per second’. Bankman-Fried is convinced that creating a functional crypto-payments network will require Proof-of-Stake (PoS) or other technological innovations.
“The blockchain must be extremely efficient, ‘light’ and have low energy costs. In PoS this exists. We should not scale Bitcoin to such a degree that miners’ electricity consumption increases a hundredfold.” — he explained.
FTX’s CEO stressed that the leading cryptocurrency may remain in the status of an asset, a exchange-traded commodity, and a store of value.
“I don’t think Bitcoin should disappear.” — Bankman-Fried explained.
Later, the FTX CEO added that the issue of high TPS can be addressed through L2-решений such as Lightning Network.
To be clear I also said that it _does_ have potential as a store of value.
The BTC network can’t sustain thousands/millions of TPS, although BTC can be xfered on lightning/L2s/etc. https://t.co/7ghQzz7eXa
— SBF (@SBF_FTX) May 16, 2022
Earlier, Bitcoin was adopted as a means of payment by El Salvador and Центральноафриканская Республика. A recent study showed slow adoption of the first cryptocurrency in the Latin American country.
Earlier, in March 2022, the European Parliament’s Committee on Economic and Monetary Affairs принял законопроект regulating MiCA. The final version did not include поправка о запрете майнинга on the Proof-of-Work consensus algorithm.
A month later, a group of US lawmakers обратилась to the Environmental Protection Agency to assess the mining industry for environmental risks and compliance with relevant laws.
In May, Norway’s Parliament отклонил a bill to ban mining on the country’s territory.
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