The value of bitcoin may be up 92 percent over the past year, with a market capitalization of more than $1 trillion (about ₹75,87,463 crore), but there are still doubts, said author and professor of international trade policy at Cornell University. Ishwar Prasad included, believes that the biggest cryptocurrency may not last long. Prasad said in a recent interview that bitcoin may be out of existence due to a lack of efficiency and an inability to facilitate exchange as a method of payment.
Prasad believes that Bitcoin It has no fundamental value as it cannot function as a suitable medium of exchange. “Bitcoin’s use of blockchain technology is not very efficient. It uses a verification mechanism for transactions that is destructive to the environment that doesn’t grow very well,” he said in a statement. Interview With CNBC.
Prasad said that the days of bitcoin may be numbered, making the blockchain the biggest legacy of bitcoin. The Indian-American economist opposed the consensus mechanism for “environmental destruction” of bitcoin, saying these are the new green alternatives. “I think the promise of decentralized funding with blockchain is real, but bitcoin itself may not last long,” Prasad said.
However, he acknowledged that bitcoin has “started a revolution” in payments, citing the fact that central banks are now rushing to issue their own digital currency, “in my view, the central bank’s currency value Will continue as a repository of.”
Prasad further added that central bank digital currencies (CBDC) “could be good in many ways in terms of providing an additional payment option, a low-cost payment option that is accessible to everyone, increasing financial inclusion, and potentially increasing financial stability.”
“As much as you may not like bitcoin, it has really started a revolution that could ultimately benefit all of us, directly or indirectly.”
Prasad, who was previously the head of the Department of Financial Studies in the International Monetary Fund’s (IMF) research department and the IMF’s China division, also praised fiat-linked stablecoins for creating a more efficient way of converting money.
The value and popularity of bitcoin has grown since its inception 12 years ago, but the business has been extremely volatile recently. The largest digital currency is currently valued at $48,792 (approximately Rs 37.02 lakh), down 2.21 percent in the last 24 hours. The cryptocurrency has jumped 92% so far, but is down about 22% in the past month.