Bitcoin has become the most popular cryptocurrency. However, the professor warns that Bitcoin may not last long. Why is that?
Esward Prasad as professor of international trade policy at Cornell University is the one who stated that. "Bitcoin itself probably won't last much longer," he said.
Bitcoin price continues to fluctuate dramatically. For example, last month the price was still in the range of USD 58 thousand, but at this time it has dropped to USD 45 thousand.
Today, there are many cryptocurrencies that some are more useful and more environmentally friendly than Bitcoin. This is what is seen as Bitcoin's weak point.
"The use of blockchain technology in Bitcoin is not very efficient. This cryptocurrency uses a validation mechanism for transactions that damage the environment and cannot scale up properly," he explained.
Indeed Bitcoin mining is so wasteful of electricity that it is a concern in many countries. Prasad said some new cryptocurrencies use blockchain technology much more efficiently than Bitcoin.
"Since Bitcoin is not good as a medium of payment, I don't think it will have any fundamental value other than whatever investors believe in," he added.
What's more, it is possible that the central bank is starting to think about issuing a digital version of the currency. Such digital currency may later be cheaper, more efficient and more stable.
"But it's true that no matter how much you don't like Bitcoin, this cryptocurrency is fueling a revolution that ultimately benefits all of us both directly and indirectly," he concluded.
