FTX CEO Says He Does Not See Future In BTC Payments

The Remarks of the FTX CEO regarding Bitcoin were heavily condemned by the crypto community, as several people diverted his attention towards Solana, a network having a PoS (proof-of-stake) consensus mechanism, that has gone offline more than a dozen times. The CEO, who is also the founder of FTX (a crypto exchange), has condemned the effectiveness of BTC (Bitcoin) for being a network of payments, however, the crypto community reciprocated with a severe reaction.

While appearing in an interview conducted on the behalf of the Financial Times, the environmental concerns caused by the PoW (proof-of-work) or mining consensus of the Bitcoin network were discussed by Bankman-Fried and he additionally asserted that the token is not substantially scalable to cater to the transfers having worth of millions. Speaking further, he rather supported the utilization of PoS mining consensus and declared it adequately suits the payment networks based on blockchain technology.

In his words, the proof-of-stake consensus of mechanism permits the people to carry out millions of transfers just in a fraction of a second with extreme efficiency along with costing minimum energy. The comments of Bankman-Fried were analogous to that of the recent voices raised on the behalf of a group formed by some billionaire lobbyists taking into account the Ripple co-founder as well as many other groups related to the environment to put an outright prohibition over PoW-based crypto mining.

Nonetheless, BTC advocates have been resiliently confronting the present narration that calls for a modification in the mining consensus of the BTC network. Jack Dorsey as well as some others have in advance clarified that there is some additional centralization in the PoS consensus mechanism whereas comparatively less security. While receiving such statements from the CEO of FTX, the crypto community did not feel to be much pleased.

Several were of the view that the network of Bitcoin is not meant for payments, nevertheless, the role of the chief payment gateway is performed by layer-2 and settlement solutions like the Lightning Network. According to one user, either FT or SBF is lying here. The user disclosed that more than 1,000,000 per-second transfers are handled by the BTC Lightning Network.

Another Reddit consumer discarded Bitcoin’s concerns related to scaling. The consumer revealed that no link exists between the consensus algorithm as well as scaling and being based on a PoS or PoW does not have any connection with scaling problems.

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