Bitcoin Has No Future As Payments Network, says FTX's Billionaire Chief

Bitcoin Has No Future As Payments Network, says FTX's Billionaire Chief

access_time2022-05-18 10:30:09

Cryptocurrency exchange FTX's founder has said that bitcoin has no future as a payments network and criticized the digital currency for its inefficiency and high environmental costs, the Financial Times reported on Monday.

Bitcoin, the world's largest cryptocurrency, is created by a process called proof of work that requires computers to mine the currency by solving complex puzzles. Powering these computers needs large amounts of electricity.

An alternative to the system is called the proof of stake network, where participants can buy tokens that allow them to join the network. The more tokens they own, the more they can mine.

FTX Founder and Chief Executive Sam Bankman-Fried told FT that proof of stake networks would be required to evolve crypto as a payments network as they are cheaper and less power hungry.


Blockchain Ethereum, which houses the second-largest cryptocurrency ether, has been working to move to this energy-intensive network.



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