With a market capitalization of $ 1 trillion (approximately Rs. 75,87,463 crore), the value of bitcoin may have risen 92 percent in the past year, but doubts remain, including Ezwar Prasad, a professor and professor of international trade policy at Cornell University. Believes the largest cryptocurrency may not stick for long. Prasad, in a recent interview, said that the presence of Bitcoin could go unnoticed due to inefficiency and inability to facilitate the transaction in a paid manner.
Prasad believes that bitcoin has no fundamental value because 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 are harmful to the environment and cannot be well measured, “he told CNBC.
Prasad said the days of bitcoin could be counted and blockchain would become the biggest tradition of bitcoin. The Indo-US economist opposed Bitcoin’s consensus mechanism for “environmental destruction”, saying these were new green alternatives. “I think the promise of decentralized funding with Blockchain is real, but Bitcoin will not last long,” Prasad said.
However, he acknowledged that Bitcoin had “begun a revolution” in payments, citing the fact that central banks were now rushing to issue their own digital currencies, adding that “in my view, the central bank’s currency will continue to be a value shop.”
Prasad further explained that the central bank’s digital currencies (CBDCs) would be better in a number of ways, such as providing additional tariff options, low-tariff options accessible to all, increasing financial inclusion and increasing financial stability. “
“You may not like bitcoin, which has actually caused a revolution that will ultimately benefit all of us, directly or indirectly.”
Prasad, who previously served as head of financial research at the International Monetary Fund (IMF)’s research division and head of the IMF’s Chinese division, praised Fiat-linked fixed currencies for creating the most efficient way to convert money.
The value and popularity of bitcoin has soared since it was launched 12 years ago, but recently the trade has become very volatile. The largest digital currency is currently valued at $ 48,792 (approximately Rs. 37.02 lakhs), down 2.21 percent in the last 24 hours. Cryptocurrency has risen 92 percent to date, but has fallen to close to 22 percent in the past month.