Bitcoin ‘may not last much longer’, scholar warns

The future of bitcoin is anyone’s guess, but one scholar has warned that the world’s most popular cryptocurrency could disappear in the near future.

Eswar Prasad, a senior professor of international trade policy at Cornell University, told CNBC’s “Squawk Box Europe” earlier this month: “Bitcoin itself may not last much longer.”

The price of Bitcoin has fluctuated wildly over the past few years, and in the last month, the price of a coin has dropped from around $58,000 to less than $48,000.

While there used to be only a few cryptocurrencies, today there are hundreds of them and some of them are more useful and eco-friendly than bitcoin.

Blockchain is basic technology behind most cryptocurrencies. It is basically a digital ledger of cryptocurrency transactions distributed over a global network of computers.

“Bitcoin’s use of blockchain technology isn’t very efficient,” said Prasad, author of “The Future of Money: The Digital Revolution That Is Transforming Money and Finance.”

He explained that the cryptocurrency “uses a validation mechanism for transactions that destroy the environment” and “doesn’t scale very well”. Real, Bitcoin’s carbon footprint is larger than the whole of New Zealand.

Prasad said some newer cryptocurrencies use blockchain technology much more efficiently than bitcoin.

He believes blockchain technology will “fundamentally transform” the way finance is done and the way we conduct everyday transactions, like buying a house or buying a car.

“Given that bitcoin doesn’t serve well as a medium of exchange, I don’t think it will have any underlying value other than whatever investor confidence makes it have,” Prasad said.

More generally, cryptocurrencies have “lit the fire for central banks to start thinking about issuing digital versions of their own currencies,” Prasad said.

He added that such digital currencies can be beneficial because they can provide a low-cost payment option that is accessible to everyone, thereby increasing financial inclusion and affordability. financial stability.

“As much as you may not like bitcoin, it has really created a revolution that can benefit all of us directly or indirectly,” Prasad said. Bitcoin ‘may not last much longer’, scholar warns

Emma James

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