“Bitcoin may not last long”
Bitcoin’s future cannot be predicted with certainty, but a scientist warns that the world’s largest virtual currency could “fly away” in the not too distant future …
Speaking to CNBC, Professor Eswar Prasad of Cornell University said, “BTC won’t last long.”
Bitcoin price has often fluctuated significantly since the birth of this virtual currency. Over the past month, Bitcoin price has fallen from around USD 58,000 to less than VND 46,000 U.S. dollar. On the afternoon of December 20, Bitcoin price fluctuated above the VND 46,000 threshold, according to Coinmarketcap.com U.S. dollar. Bitcoin’s all-time peak is approaching 69,000 U.S. dollar November set up.
When new virtual currencies appeared, the number of virtual currencies in the world was very small. But today there are thousands of different virtual currencies in the world, some of which have broader functions and are more environmentally friendly than Bitcoin.
Blockchain is the technology that powers most virtual currencies. Essentially, this is a digital ledger for online virtual currency transactions that is distributed across a global network of different computers.
“The way Bitcoin uses blockchain technology is not very effective,” said Mr. Prasad – author of “The Future of Money: How the Digital Revolution is Transforming Currencies and Finances. How the digital revolution is changing currencies and finances ”) – Explanation.
“Bitcoin’s transaction validation is bad for the environment,” and the virtual currency is also “not great at scaling,” said Prasad. According to some data sources, Bitcoin’s carbon footprint is larger than that of an entire country, New Zealand, as BTC mining uses a lot of electricity.
According to Prasad, some newer cryptocurrencies use blockchain technology much more efficiently than Bitcoin.
He believes blockchain technology will “fundamentally change” the way the financial sector and the world still conduct everyday transactions like buying a house or a car.
“Given that BTC is not currently in use as a currency, I don’t think this virtual currency will have any fundamental value beyond investors’ belief that Bitcoin will have such value,” Prasad said.
In addition, the virtual currency “got central banks on fire and thinking about issuing digital versions of paper currencies in every country,” said Prasad.
The professor added that digital currencies issued by the central bank can be beneficial as they provide an affordable payment option that is accessible to everyone, thereby improving financial inclusion and even creating financial stability.
“But whether you like BTC or not, this virtual currency is really starting a revolution that will ultimately benefit all of us, directly or indirectly,” said Prasad.
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