Business & Investment

Bitcoin has no future as a payment network

Cryptocurrency Exchange According to Financial Times, the founders of FTX believe that Bitcoin has no future as a payment network and criticize the inefficiencies and high environmental costs of digital currencies.

The world’s largest cryptocurrency, BitcoinIs created in a way called “Proof of Work”. This method requires the computer to solve complex problems and “mining” the currency. A large amount of power is required to power these computers.

The “Proof of Stake” network is an alternative to the system where players can buy tokens to join the network. The more tokens you have, the more mining you can do.

According to FTX founder and CEO Sam Bankman-Fried, “proof of stake” networks are cheaper and consume less power, so cryptography needs to evolve as a payment network.

Ethereum, home of the second largest cryptocurrency, Ethereum, has attempted to move to this energy-intensive network.

Bankman-Fried also said he doesn’t think Bitcoin needs to die as a cryptocurrency. Like gold, there may still be a future as an “asset, commodity, and valuable store.”

Last week, with the collapse of the so-called stablecoin TerraUSD, Bitcoin has fallen To the lowest level since December 2020.

In the February round of investment, Bankman-Fried co-founded FTX in 2019 is worth $ 32 billion and Bankman-Fried is worth $ 21 billion.

Bitcoin ends in red for 7 consecutive weeks

The previous 7 days roller coaster ended with another weekly candle closing in red for Bitcoin. As a result, cryptocurrencies closed in the red for the first time in seven weeks and made history in a fairly dark week. The worst trading day was May 12th. BTC It has fallen from just over $ 30,000, the lowest price since late December 2020, to $ 25,300. Despite a rapid recovery and regaining the value of thousands of dollars, cryptocurrencies have completed lower weekly candles than their predecessors.

With seven consecutive candles in red, it created its longest bearish weekly stretch. It’s worth noting that the fresh weekly candles that started a few hours ago are now red, but much can happen in the crypto market in seven days. It is not surprising that the widespread fear and greed index has fallen into the “serious fear” realm due to the bad tendency mentioned above. Statistics measure various data points such as surveys, volatility, social media comments, etc. Bitcoin community. Worth to remember. But that Bitcoin clearly tends to work when in despair. For example, during the COVID-19 plunge, the index dropped to 8, but BTC fell by 50% in one day.

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Bitcoin has no future as a payment network Bitcoin has no future as a payment network

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