Eswar Prasad, a professor of international trade policy at Cornell University, made the provocative statement on CNBC that "Bitcoin may not have much time."
The price of Bitcoin has fluctuated widely throughout its existence, while in the last month its price has fallen from about $ 58.000 to less than $ 46.000. Last Saturday, its price stood at $ 46,624, up 0,56%.
The professor cites the inefficient use of blockchain technology by Bitcoin, justifying his claim. "Bitcoin's use of blockchain technology is not very effective," he said. The cryptocurrency "uses a validation mechanism for transactions that are harmful to the environment" and "is not growing very well," he explained. It is noted that the carbon footprint of bitcoin has been estimated to be larger than that of New Zealand.
Prasad said newer cryptocurrencies use blockchain technology much more effectively than Bitcoin.
As he said, blockchain technology will be "fundamentally transformative" for the financial sector but also for the way we conduct our daily transactions, such as buying a house or buying a car.
"Given that bitcoin does not serve well as a medium of exchange, I do not think it will have any fundamental value in the future other than that given to it by its fanatical followers," Prasad added.