Today, most people have an opinion on how the situation with Bitcoin will unfold in the future, however, one academic warns 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, said earlier this month that "Bitcoin may not in itself last that long."
The price of Bitcoin has been very volatile in recent years, and in recent months the value of one Bitcoin has fallen from about $ 58,000 to less than $ 46,000. While there used to be only a few cryptocurrencies, today there are hundreds, and some of them are more useful and environmentally friendly than Bitcoin, CNBC reports.
Blockchain is the core technology for most cryptocurrencies,
It is essentially a digital book of virtual currency transactions that are distributed across a global computer network. "Bitcoin's use of blockchain technology is not very effective," said Prasad, author of The Future of Money: How the Digital Revolution Changes Currencies and Finance.
Cryptocurrency “uses a validation mechanism for environmentally destructive transactions” and “does not increase very well”. Bitcoin's carbon footprint is larger than the whole of New Zealand, Prasad explained.
Also, Prasad said some of the newer cryptocurrencies use blockchain technology far more efficiently than Bitcoin. He believes that blockchain technology will be a “fundamental transformation” in the way we use everyday finances and transactions, such as buying a house or a car.
In addition, Prasad explained that Bitcoin does not serve as a good medium of exchange and will not have any fundamental value, regardless of the faith of investors. He added that in general, cryptocurrencies have "inserted a bug in central banks to start thinking about issuing their own digital currencies"
He added that such digital currencies could be useful because they can provide a cheap payment option that everyone has access to, potentially increasing financial stability. "No matter how much we may not like Bitcoin, it has started a revolution that could ultimately benefit us all directly or indirectly," Prasad concluded.