FTX CEO Sam Bankman-Fried in a Twitter thread identified other use cases for the crypto industry aside from its use as a speculative financial investment instrument.
According to SBF, it will ignore the popular investor line that “you can buy tokens and maybe they will go up” and focus on its potential use in payments, market structure and social media.
Speaking on payment, SBF said transaction dynamics have changed over time with the development of new technologies and advancements.
According to his statement, payments are difficult, slow and costly as it can take several days or months for some transactions to be confirmed using traditional financial systems due to the challenges present in the process.
He added that payments are processed in seconds and “often cost fractions of a penny”.
On market structure, SBF said traditional markets run the risk of being overwhelmed with transactions. He cited the example of January 28, 2021, when retail interest in Gamestop, AMC and meme coins have grown exponentially.
The presence of multiple intermediaries in the transaction process resulted in high “settlement risk” forcing these brokerages to shut down their services to manage the situation.
As a result, users could neither buy nor sell their assets, while some were liquidated and lost money in the process.
SBF believes that crypto helps address these market structure issues because it “can create simpler, fairer, and less risky market structure and settlement.”
According to his tweet, users of one social media platform cannot see what their friends post on other social media sites.
In his words,
Right now, if you tweet something and your friend goes out on Facebook, they can’t see your tweet.
But with blockchain technology, that could change as platforms become more interoperable. He argued that if social media networks adopt public blockchains, a user can post a message on Facebook and another user can see the same message on Twitter.
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