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Sam Bankman-Fried Says FTX is Carbon Neutral, Declares BTC and ETH as Wasteful


cryptoknowmics.com 28 July 2021 06:30, UTC
Reading time: ~2 m

The CEO of the crypto derivatives exchange FTX, Sam Bankman-Fried drew the attention of the community today after he pointed out Bitcoin and Ethereum as the most energy-consuming blockchains. He made an announcement during his discussion with the SquawkBox of CNBC that the trading platform FTX has gone Carbon neutral as a segment of its FTX Climate initiative.

FTX Goes Carbon Neutral, Says Sam Bankman-Fried 

Sam Bankman-Fried recently spoke to the SquawkBox of CNBC, in which he addressed the news that the FTX derivatives exchange has gone completely carbon neutral and said:

“The company has committed at least $1 million to permanent carbon capture and storage and we’ve given about $500k to other research efforts aimed at mitigating climate change.”

In addition to this, he mentioned the need to alleviate and said:

“I think it’s the responsible thing to do to mitigate—to the extent you can—the short-term impact.”

During the discussion, Sam mentioned that the trying and offsetting of the transactions that FTX is facilitating is not free and even concurrently nominated Bitcoin and Ethereum as the cryptocurrencies with heavy energy consumption at present.

Ethereum to Shift to Pos Protocol, Bitcoin Will Remain The Big Energy User

Being proof-of-work (PoS) currencies, both Bitcoin and Ethereum requires a lot of energy, and addressing this fact, Sam stated:

“I think the other side of this is that when you look at the energy uses of cryptocurrencies, there are only two major cryptocurrencies that have large energy usage—it’s Bitcoin and Ethereum, now they are the two biggest. The reason is that those are the two proof-of-work (PoW) currencies, and proof-of-work is where all the energy usage comes from.”

Ethereum is at present transitioning to a proof-of-stake (PoS) protocol which requires less electricity and hence only Bitcoin will remain a big energy user.

Many users did not agree with this fact and said that though PoW requires a lot of energy and has a cost, it is what makes the currency decentralized and safe.

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