Apart from its usage as a speculative financial investment tool, the Chief Executive Officer of FTX, Sam Bankman-Fried, outlined several use-cases for the cryptocurrency business in a Twitter thread.
SBF asserts that he will disregard the investor adage that “you can buy tokens and maybe they’ll go up” in favor of concentrating on its possible applications in payments, market structure, and social media.
SBF claimed that as new technology and innovations have emerged, the dynamics of transactions have altered over time.
According to his claim, payments are difficult, expensive, and slow because of the difficulties that might arise when using conventional financial systems. It may take days or even months before some transactions are confirmed.
Blockchains, however, “enable anyone to construct a wallet and use it to transmit and receive tokens—including USD pegged stablecoins,” which eliminates all of these problems.
Payments are completed instantly, he continued, and frequently “cost fractions of a dime.”
Regarding market structure, SBF stated that there is a danger of transaction overload in the traditional markets. He used January 28th, 2021, as an example, when demand for Gamestop, AMC, and meme currencies skyrocketed in stores.
Due to the substantial “settlement risk” brought on by the involvement of numerous intermediaries in the transaction process, these brokerages were forced to suspend their operations in order to control the situation.
As a result, users were unable to acquire or sell their assets, while others were liquidated and suffered financial losses as a result.
According to SBF, crypto “may produce simpler, more egalitarian, and less dangerous market structure and settlement,” which aids in resolving these issues with market structure.
The FTX CEO stated that social media networks’ isolation is their main issue.
He said in a tweet that those using one social media site are unable to view the content that their friends publish on other social media platforms.
“Right now, if you tweet something, and your friend pulls out Facebook, they can’t see your tweet.”
But as the systems grow more interoperable thanks to blockchain technology, this might alter. He stated that if social media platforms adopted public blockchains, users would be able to send messages on Facebook and receive them on Twitter.