bitcoin and cryptocurrency Sam Bankman-Fried (SBF), CEO of the stock exchange FTX, responded on Twitter to those who claim that cryptocurrencies have no use.
Stating that cryptocurrencies have uses outside of investment, SBF explained that the biggest impact of crypto assets can be seen in three main areas: payments, market structure and social media.
SBF Draws Attention to the Use of Cryptocurrencies in Payments
SBF detailed all the major challenges faced by people using traditional payment structures today. For example, he highlighted the issue of paying a fixed transaction fee even when making small payments.
He also highlighted the difficulties of cross-border payments, such as the multiple varieties of foreign currency relative to national currencies, the lack of access to 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 simply by creating wallets.
1) To what end?
Some potential use-cases for crypto.
— SBF (@SBF_FTX) July 16, 2022
SBF also highlighted that Blockchain can help improve the market structure. Referring to the day when Gamestop and other meme shares skyrocketed, he explained that the real reason for disabling users was payment risk. Citing his own company as an example, SBF stated that users can be protected from all payment risks thanks to Blockchain.
SBF also believes that using public blockchains could break the monopoly of social media giants like Facebook and Twitter.
Blockchain Technology Needs Improvements
After highlighting key crypto use cases, SBF outlined its vision for how mass adoption of crypto technology could be accelerated. According to the SBF, the first step should be improvements in technology.
As of now, most blockchains can process between 5000 and 50,000 transactions per second. According to the SBF, the industry needs to reach the 1 million transactions per second milestone through technological advances.
The CEO of FTX also said that crypto assets must be regulated for legal clarity and mass adoption. He also highlighted the need for crypto regulation for clarity and mass adoption. The SBF praised the steps the United States has taken to help with this.
*Not investment advice.