Bitcoin’s future is difficult to predict, but Ishwar Prasad, professor of international trade policy at Cornell University, warns that the world’s most popular cryptocurrency could turn yellow in the near future.
In a recent interview with CNBC, Prasad stated that bitcoin’s lack of efficiency and its inability to facilitate exchange as a method of payment would be the reason for its downfall.
Blockchain is the underlying technology behind cryptocurrencies. Bitcoin and thousands of cryptocurrencies are essentially code recorded on a blockchain that gets longer and longer as more people use them. Prasad believes that the use of blockchain technology by bitcoin is not very efficient. “It uses a verification mechanism for transactions that is destructive to an environment that is not very well developed.”
The Indian-American economist also 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,” he told CNBC.
However, Prasad favored central bank digital currencies (CBDCs), saying that it “could be good in many ways in terms of providing an additional payment option, a low-cost payment option that is accessible to all, financial Increased inclusion, and potentially even increased financial stability.”
He added that digital currencies are beneficial as they can provide a low-cost payment option, accessible to all, thereby increasing financial inclusion. “As much as you may not like bitcoin, it has really started a revolution that could ultimately benefit all of us, directly or indirectly.”
Meanwhile, in a recent Twitter exchange, along with Grammy Award-winning rapper Cardi B, former Twitter CEO Jack Dorsey said on Tuesday that bitcoin to change U.S. Dollar. Cardi B asked on Twitter if crypto would replace US currency, to which Dorsey replied, “Yes, bitcoin will.”
Supporting blockchain technology for transparency in payments, Dorsey recently released the whitepaper of his decentralized bitcoin exchange offering – tbDEX. Dorsey has confirmed to investors that bitcoin will be a “big part” of the company’s future.
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