Bitcoin has no future as a payment network, says FTX CEO

The FTX CEO doesn’t see a future for bitcoin as a means of payment, but the man isn’t entirely impartial.

To pay or not to pay, that is the question. And this is a question that has always been raised, sometimes harshly, among bitcoin holders when they have tried to reconcile the two aspects of this virtual currency: its intrinsic value – for savings, for example – and the method of payment. For the CEO of FTX, the answer has been found.

FTX CEO sees no future for bitcoin as a means of payment

Sam Bankman-Fried, current CEO of FTX, was very clear in favor of the first aspect in an interview with the Financial Times. He even went so far as to say that Bitcoin has no future as a payment network due to its inefficiency and high environmental costs. According to Sam Bankman-Fried, blockchains based on Proof-of-Stake or Proof of Stake are more suitable for payment solutions because they are cheaper and less energy intensive. However, Sam Bankman-Fried also stated that Bitcion has real potential as an “asset, product, and store of value.” He confirmed his opinion on this matter on Twitter.

Commentators were quick to note that Sam Bankman-Fried has been very critical of the industry that made him a billionaire lately. A few weeks ago, he tried to explain crop farming and compared it to a Ponzi scheme.

But man is not really impartial

Although Sam Bankman-Fried did not take the Lightning Network into account, his comments are nonetheless supported by the data. Indeed, for example, only 40% of Salvadorans use the national bitcoin wallet Chivo, even though BTC has been legal tender in El Salvador for several months. Many investors choose to hold their coins, which is why the HODL mentality is especially strong in the bitcoin community.

Sam Bankman-Fried’s comments came shortly after the announcement of his acquisition of a 7.6% stake in the trading app Robinhood. Then the company’s shares rose. The FTX CEO is also closely aligned with Solana, a high-speed Tier 1 blockchain that could be a better fit for the payment network if it wasn’t so frequently abused.