Bitcoin might fade away : Cornell University Professor

Bitcoin might fade away, Cornell University Professor Eswar Prasad predicts. Let’s find out why he said this statement.

Introduction

Bitcoin, the first and the largest Cryptocurrency is notoriously famous or should we say infamous for being hard to predict. Having a reputation of being volatile, Bitcoin is famous for its unpredictable nature. While the future is really hard to predict when talking about Cryptocurrency, a professor from the Cornell University, Eswar Prasad is sceptical about the coin’s future.

The interview

In an interview, Prasad said that Bitcoin might fade away in the near future. He didn’t blatantly gave out such a statement. P also added that due to Bitcoin’s inefficiency and the inability to be used as a mode of payment might potentially lead to its downfall.

He further added that Bitcoin’s downfall will be due to its inefficiency. Prasad said that Bitcoin’s use of Blockchain to validate transactions is not efficient. “It uses a validation mechanism for transactions that is environmentally destructive that doesn’t scale up very well,” the professor said.

He is also against the idea for a  consensus mechanism for Bitcoin’s “environmental destruction”. He instead insists for green alternatives. “I think the promise of decentralised funding with blockchain is real, but Bitcoin itself may not last long,” he said.

The professor’s opinion on CBDCs

On the other hand, Prasad is optimistic about CBDCs (Central Bank Digital Currencies). He said that it “could be good in many ways in terms of providing an additional payment option, a low-cost payment option that everybody has access to, increasing financial inclusion, and potentially also increasing financial stability.”

Prasad further said that digital currencies are good as they increase financial inclusion because they provide low-cost payment options that anyone has can use. He said “Much as you might not like Bitcoin, it has really set off a revolution that ultimately might benefit all of us either directly or indirectly.”

Conclusion

Bitcoin might fade away, Cornell University Professor Eswar Prasad says in an interview. With comments by such intellectuals, we might get some insights and information about Cryptocurrencies. Additionally, it provides us with great advice for better financial decisions.

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