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Sam Bankman-Fried Doesn’t Believe Bitcoin Will Be Used For Payments

Sam Bankman-Fried, founder of crypto exchange FTX, has given his views on the future of Bitcoin usage.

Sam Bankman-Fried stated that he does not believe Bitcoin will function as a payment network, due to its limited scalability.

However, he believes it can become “an asset, a commodity, and a store of value.”

In an interview published by the Financial Times, Sam Bankman-Fried criticized the implementation of Bitcoin as a payment network.

For him, the Bitcoin blockchain system will never function as a payment system for some reason.

The lack of scalability of the Bitcoin blockchain is one of them, and the second has to do with environmental impacts.

For Bankman-Fried, Bitcoin is like gold, he stated:

Why don’t we go to a store and pay with gold? First of all, it is absurd. It will be unbelievably expensive. And I’m sure it won’t be good for the climate.

He also stated that the proof-of-stake (PoS) network would be more efficient to accomplish this task.

Sam Bankman-Fried believes that Bitcoin has other unique properties that make it “an asset, a commodity, and a store of value.”

However, some disagree with Bankman-Fried’s opinion. The introduction of Bitcoin Lightning Network (LN), the Layer2 scaling protocol that makes Bitcoin very low transaction costs, could be the solution for BTC.

This is the opinion of Paolo Ardoino, CTO of Bitfinex, who believes that Lightning has the potential to make Bitcoin a viable means of payment. He stated:

Bitcoin’s Lightning Network is quietly emerging to fulfill Satoshi Nakamoto’s prophecy of a decentralized, peer-to-peer payment network. A case in point is El Salvador, where the adoption of bitcoin as Legal Currency has turned the country into an experimental ground for the use of Lightning.

David Marcus, former head of crypto at Meta, recently launched Lightspark, a company that will research Lightning Network capabilities for payments.