Crypto has no use? The CEO of FTX responds to critics
FTX CEO, Sam Bankman-Fried or SBF took to Twitter to answers to critics who believe that crypto has no use cases.
By stating that crypto has utility issues beyond investments, SBF revealed that crypto’s greatest impact can be seen in three main areas of payments, market structure and social media.
SBF highlights Crypto’s role in payments
SBF described all the major problems that people currently face using traditional payment structures today. For example, he highlighted the issue of paying a fixed transaction fee while making small payments.
He also highlighted the inconvenience of cross-border payments such as multiple currencies based on nationality, lack of availability of banks and the time it takes to complete such transactions. SBF emphasized that with the help of cryptocurrencies, the whole process can be done in a few seconds just by creating wallets.
SBF also emphasized that blockchain can help improve our market structure. He quoted the day when Gamestop and other meme shares shot up, revealing that the real reason for shutting down users was settlement risk. He highlighted the company FTX and revealed that blockchains can help users circumvent all settlement risk.
SBF also believed that by using underlying public blockchains, the monopoly of social media giants such as Facebook and Twitter can be broken.
Crypto-adoption strategy
After highlighting the most important crypto use cases, SBF outlined its vision on how mass adoption of crypto can be accelerated. According to him, the first step must be the improvement of technology.
As of now, most blockchains can handle anywhere from 5,000 to 50,000 transactions per second. According to him, the industry must reach the milestone of 1 million transactions per second through technological advances.
He also highlighted the need for cryptoregulation for clarity and mass adoption. The SBF praised the steps the United States has taken to help in this regard. He also challenged blockchain to prioritize building good products over revenue generation.
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