Bitcoin has no future as payment network, says FTX owner Bankman

Bitcoin value slumps to a five-month low

Cryptocurrency exchange FTX’s founder has said that bitcoin has no future as a payments network and criticized the digital currency for its inefficiency and high environmental costs, the Financial Times reported on Monday.

FTX Founder and Chief Executive Sam Bankman-Fried told FT that “proof of stake” networks would be required to evolve crypto as a payments network as they are cheaper and less power hungry.

Blockchain Ethereum, which houses the second-largest cryptocurrency ether, has been working to move to this energy-intensive network.

Bitcoin slumped to Ksh.3.4 million ($30,000) for the first time since July 2021 on Tuesday as cryptocurrencies track sinking markets with investors spooked by aggressive U.S. monetary tightening and surging inflation.

The world’s largest cryptocurrency by market value fell as low as Ksh. 3,452,681.06 ($29,764) in May 10, 2022 trade, before recovering above Ksh. 3,480,099.99 ($30,000), extending a recent collapse in price as investors desert assets viewed as risky.

Bitcoin’s value has more than halved since a November surge that saw the token hit a record of nearly Ksh.8,004,229.97 ($69,000).

While crypto enthusiasts view bitcoin as a hedge against inflation, an influx of more traditional investors tend to view it as a riskier asset.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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