Bitcoin Won't Be A Global Payments Network, This Is What The FTX Boss Says

Bitcoin is not predicted to be a global currency, because BTC is more like gold. (Unsplash)

JAKARTA – The widespread adoption of Bitcoin in a number of countries and companies does not guarantee that BTC can become a global payment instrument. According to FTX CEO Sam Bankman-Fried, Bitcoin still uses a Proof-of-Work (PoW) algorithm that allows mining.

This is called inefficient and has an impact on the environment. Even so, he believes that Bitcoin will not disappear because it can become a store of value like gold.

Furthermore, the FTX boss criticized Bitcoin's ability for not being able to process large transactions with low fees. According to him, neither Bitcoin nor other cryptocurrencies that use the PoW mining model have a chance of becoming a payment system in the future.

“The Bitcoin network is not a payment network, and it is not a scaling network...” he said.

Then Sam Bankman-Fried judged that the right one to be a payment network was crypto that uses the Proof-of-Stake (PoS) algorithm. The reason is that cryptocurrencies that use the PoS network have the ability to make transactions faster and cost less. This is the right choice to be used as a means of payment widely.

“The things you do with millions of transactions per second have to be very efficient and light and have lower energy costs,” says Sam Bankman-Fried.

Bitcoin has a different role, namely not being a payment network but as a store of value. BTC is referred to more like gold as a store of value. On the other hand, one of the cryptocurrencies that will make the transition from PoW to PoS is Ethereum. The switch is aimed at making Ether more environmentally friendly and cutting high network costs.

Discussing cryptocurrencies that use the PoS algorithm, the CEO of FTX himself often praises the ability of Solana (SOL) which is considered to be dominant in the future. The ability of SOL is said to have the potential to surpass BTC and ETH because it is capable of carrying out millions of transactions per second.