Academic warns that bitcoin may not last much longer
The future of bitcoin is anyone’s guess, but one academic has advised that the world’s most popular cryptocurrency could fade out in the near future.
Eswar Prasad, elderly professor of transnational trade policy at Cornell University, told CNBC’s “ Squawk Box Europe” before this month “ Bitcoin itself may not last that much longer.”
Bitcoin’s price has been largely unpredictable over the last many times and in the last month the price of one coin has fallen from around $58,000 to lower than $46,000. At 1015 a.m. ET on Friday, the price of a bitcoin was $45,637.
While there used to be just a many cryptocurrencies, moment there are hundreds and some of them are more useful and more environmentally-friendly than bitcoin.
Blockchain is the underpinning technology behind utmost cryptocurrencies. It’s basically a digital tally of virtual currency deals which is distributed across a global network of computers.
“ Bitcoin’s use of the blockchain technology isn't veritably effective,” said Prasad, who's the author of ’“ The Future of Plutocrat How the Digital Revolution is Transforming Currencies and Finance.”
The cryptocurrency “ uses a confirmation medium for deals that's environmentally destructive” and “ doesn’t gauge up veritably well,” he explained. Indeed, bitcoin’s carbon footmark is bigger than the total of New Zealand.
Prasad said some of the newer cryptocurrencies use blockchain technology far more efficiently than bitcoin does.
He believes blockchain technology will be “ unnaturally transformative” in the way that finance is done and in the way we conduct our day-to- day deals, like buying a house or buying a auto.
“ Given that bitcoin isn't serving well as a medium of exchange, I do n’t suppose it’s going to have any abecedarian value other than whatever investor’s faith leads it to have,” Prasad said.
More generally, cryptocurrencies have “ lit a fire under central banks to start allowing about issuing digital performances of their own currencies,” Prasad said.
He added that similar digital currencies could be salutary as they may give a low- cost payment option that everyone has access to, thereby adding fiscal addition and potentially fiscal stability.
“ Important as you might not like bitcoin, it has really set off a revolution that eventually might profit all of us either directly or laterally,” Prasad said.