Sam Bankman-Fried, CEO and founding father of main crypto alternate FTX, and investor in Solana (SOL), was accused of deceptive the general public as he omitted necessary info whereas bashing Bitcoin (BTC). The CEO claims that his quotes have been chosen “very selectively” by a mainstream media outlet, identified for skepticism in the direction of Bitcoin and crypto.
In an interview with the Monetary Instances (FT), Bankman-Fried said that the proof-of-work (PoW) consensus mechanism, which powers Bitcoin, cannot be scaled to help hundreds of thousands of transactions, thus making the flagship cryptocurrency an inefficient technique of fee.
“The Bitcoin community just isn’t a funds community and it’s not a scaling community,” he was quoted as saying within the article titled “Bitcoin has no future as a funds community, says FTX chief.”
The CEO additionally promoted proof-of-stake (PoS)-powered blockchains, similar to Solana, that suffered multiple outages this 12 months, saying that these networks are “extraordinarily environment friendly and light-weight and decrease vitality value.”
Nonetheless, Bankman-Fried mentioned that Bitcoin nonetheless has a future as “an asset, a commodity and a retailer of worth” just like gold.
And whereas the CEO is perhaps technically proper, these statements got here as a shock to some within the crypto group, who identified that Bitcoin is a settlement layer that makes use of the fast-growing Lightning Network (LN), a layer 2 (L2) answer designed to make Bitcoin transactions sooner and cheaper, because the fee community. Competing blockchains, similar to Ethereum (ETH), are additionally utilizing L2 scaling solutions.
Others known as Bankman-Fried’s feedback “deceptive” since they made no point out of the Lightning Community, speculating that he could possibly be making an attempt to advertise Solana, a community he has closely invested in.
Nevertheless, the crypto billionaire later mentioned that the FT has chosen his “phrases very selectively,” acknowledging that “BTC might be [offered] on lightning/L2s/and so on.”
In the meantime, in late 2021, when the CEO testified on the Digital Belongings and the Way forward for Finance: Understanding the Challenges and Advantages of Monetary Innovation in the US listening to, he additionally took the chance to focus on the advantages of PoS over PoW, calling the previous a “low-cost, carbon-efficient” various.
Beforehand, Bankman-Fried has additionally claimed that centralized Solana is best than decentralized Ethereum since it may help a lot of customers and transactions and might accommodate mass adoption.
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(Up to date at 11:04 UTC with a further tweet.)