Although Bitcoin’s price has risen by 92 percent in the last year, with a market valuation of over $1 trillion, some skeptics, such as Eswar Prasad, a global trade strategy professor at Cornell University and a writer, presume that the greatest cryptocurrency will not last much longer. In a recent conversation, Prasad suggested that Bitcoin may be phased out owing to its inefficiency and incapacity for functional communication as a payment mechanism.
Bitcoin, according to Prasad, has no basic value since it is ineffective as a vehicle of trade. “Bitcoin’s implementation of blockchain technology is inefficient. In an interview with CNBC, he remarked, “It employs an exchange validation process that is ecologically damaging and doesn’t quite increase capacity.”
Bitcoin’s future could be numbered, according to Prasad, who believes that blockchain will be Bitcoin’s greatest legacy. The Indian-American scientist criticized Bitcoin’s consensus method for “negative externalities,” claiming that these are the “new green alternates.” “The promises of decentralized funding with blockchain are true,” Prasad added, “but Bitcoin itself may not endure long.”
“In my view, the financial market money will remain to triumph as a measure of wealth,” he said, acknowledging that Bitcoin has “initiated a transformation” in transactions, highlighting the fact that central banks are already scrambling to establish their own virtual currencies.
Central bank digital currencies (CBDCs), according to Prasad, “may be useful in many aspects, including offering an extra payment system, a low-cost payment alternative that everyone has access to, boosting economic growth, and perhaps also enhancing monetary sustainability.”
It has sparked a revolution that, in the end, may enrich every one of us, perhaps actively or passively.
Prasad, who formerly worked as the leader of the International Monetary Fund’s (IMF) China division and indeed the leader of the financial investigations section at the IMF’s research committee, lauded fiat-linked stable coins for earning money exchange extremely proficiently.
From its very debut 12 years back, the Price of bitcoin and acceptance have skyrocketed, but trading has already been particularly turbulent recently. The world’s most valuable virtual money is now worth $48,792, down 2.21% within the last 24 hours. The cryptocurrency has gained 92 percent this year and has dropped over 22% in the previous month.