TLDR: Sam Bankman-Fried said he does not believe that Bitcoin can operate as a payment network, criticizing the high energy costs of its proof-of-work algorithm and arguing that it cannot support millions of transactions per second. However, he believes it has potential as a store of value.
on Monday interview, cryptocurrency billionaire Sam Bankman-Fried said he sees no future for Bitcoin as a payment network. Bankman-Fried is the founder and CEO of FTX, one of the most popular cryptocurrency exchanges in the world.
The 30-year-old billionaire has criticized Bitcoin’s underlying proof-of-work system used to validate transactions for its high environmental costs and inefficiency. He argued that the network was not capable of processing millions of transactions per second. However, he did mention that users can transfer bitcoins to second layer payment protocols such as Lightning. He also noted that proof-of-stake networks solve these problems.
To be clear, I also said that it _does_ have potential as a store of value.
The BTC network cannot support thousands/millions of TPS, although BTC can be transferred via Lightning/L2s/etc. https://t.co/7ghQzz7eXa
— SBF (@SBF_FTX) May 16, 2022
Switching bitcoin to a proof-of-stake algorithm will not be easy. As a reminder, the developers of Ethereum have been planning the transition to PoS for several years, although this was met with several delays.
While Bankman-Fried does not believe in bitcoin as a viable payment currency, he has mentioned that it has potential as an asset, commodity, and store of value, similar to gold.
Last week, the entire crypto market experienced a massive crash following the crash of the Terra stablecoin. Bitcoin has recovered slightly since then, but is still down more than 50 percent from its peak in November.