Eswar Prasad: Bitcoin (BTC) won’t last much longer

Sat 18 Dec 2021 ▪ 21h42 ▪ 3 min read — by James Taylor

As we all know, Bitcoin (BTC) is the first and largest cryptocurrency, currently dominating the digital asset market. At the moment, Bitcoin has the largest market capitalisation among all cryptos, enabling BTC to determine market trends, with the price of all other cryptocurrencies following it.

Bitcoin’s volatility and its consequences

All of the above suggests that in order to successfully predict fluctuations in the entire crypto market, knowing the future Bitcoin’s price trajectory is quite enough. But the problem is that even the best experts in the crypto industry can’t accurately predict Bitcoin’s whims. Back in autumn, many said Bitcoin would be able to reach $100,000 by the end of 2021, but today, on 18th December, Bitcoin is trading at around $47,000. And even though BTC has been around for more than 10 years, it still constantly shocks the entire crypto community with its unpredictable swings.

And while some were able to make huge profits from these fluctuations, other investors actually lost fortunes. Of course, this couldn’t be ignored by the many experts interested in the topic.  For instance, Eswar Prasad, senior professor of international trade policy at Cornell University, believes that “Bitcoin itself may not last that much longer.”

Eswar Prasad considers new cryptos more efficient than Bitcoin

Prasad himself has been studying digital currencies for a long time, and is chiefly known in the industry for his book called “The Future of Money: How the Digital Revolution is Transforming Currencies and Finance”. But despite holding a generally positive opinion on cryptocurrencies, he feels much less excited about Bitcoin. Of course, one of the reasons for this is that “Bitcoin uses a validation mechanism for transactions that is environmentally destructive”. Finally, in Eswar’s opinion, Bitcoin’s scalability is mediocre. Therefore, Prasad believes that more efficient cryptocurrencies are likely to eclipse Bitcoin in the future.

Eswar Prasad is confident that cryptocurrencies are here to completely transform the financial system, allowing for an inclusive and affordable payment method, which can positively influence financial stability around the world. However, in his opinion, Bitcoin isn’t suitable for this purpose, due to it “not serving well as a medium of exchange”.

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James Taylor

Trends are temporary. The blockchain isn’t a trend; it’s the future. I want to help as many people as possible understand it in a simple, clear and interesting way.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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