Satoshi Nakamoto created Bitcoin (BTC) to serve as a decentralized alternative to the traditional financial system. But FTX CEO Sam Bankman-Fried recently said that he doesn’t see any future for Bitcoin as a payments network.
Speaking to Financial Times, the FTX chief said that his thoughts rely on the Bitcoin network’s “inefficiency and high environmental costs”. He added that Bitcoin’s Proof-of-Work (PoW) blockchain that validates transactions isn’t capable to scale enough to address the transactions of millions of users worldwide.
“The Bitcoin network is not a payments network and it is not a scaling network,” he said. Thus, he believes that BTC isn’t an effective means of payment. Sam Bankman-Fried isn’t alone in the crypto space to think like this. Many crypto market enthusiasts agree that Bitcoin (BTC) serves a better purpose as a store of value rather than as a means of payment.
However, there are some countries seeing a huge hope in Bitcoin as a means of payment. Two countries – El Salvador and the Central African Republic have already made Bitcoin a legal tender.
Bitcoin Adoption Really on the Rise?
Although the two countries have adopted Bitcoin as a legal payment method, the adoption isn’t much. Recent research by American academics shows that Bitcoin has been rarely used for payments in El Salvador.
