Cornell University economics professor Eswar Prasad admits that the promise of blockchain technology and DeFi are real but suggests Bitcoin won’t last. Covered Cornell Professor Admires DeFi, Thinks Bitcoin Won’t Last Bitcoin Is The Reserve Currency Of The Cryptocurrency Market Cornell Professor Admires DeFi, Thinks Bitcoin Won’t Last Eswar Prasad, former head of the International […] The post Bottom Tier Ivy Professor Loves DeFi, But Thinks Bitcoin’s Going To Zero appeared first on CryptosRus.

Bottom Tier Ivy Professor Loves DeFi, But Thinks Bitcoin’s Going To Zero

Cornell University economics professor Eswar Prasad admits that the promise of blockchain technology and DeFi are real but suggests Bitcoin won’t last.

Covered

  • Cornell Professor Admires DeFi, Thinks Bitcoin Won’t Last
  • Bitcoin Is The Reserve Currency Of The Cryptocurrency Market

Cornell Professor Admires DeFi, Thinks Bitcoin Won’t Last

Eswar Prasad, former head of the International Monetary Fund (IMF) China Division, and current Tolani Senior Professor of International Trade Policy and economics faculty at Cornell University talked about Bitcoin and other various blockchain technology subjects in a recent interview with CNBC.

Dr. Prasad has an impressive vita and frequently appears on noteworthy television and radio shows. He has testified before U.S. Congressional committees, and some of his research has been placed on the official Congressional Record. He was previously appointed as the chief of financial studies division in the IMF. Additionally, Prasad frequently appears on CNBC, NPR, Bloomberg, and others. However, Prasad failed to recognize the importance of Bitcoin in the cryptocurrency market. Still, he admitted that DeFi using the foundation of blockchain technology is a real promise: “The promise of decentralized finance using blockchain technology is a real one, but bitcoin itself may not last that much longer.”

He commented that blockchain technology will be “fundamentally transformative” in the realm of finance and how day-to-day transactions occur. Still, he believes that Bitcoin won’t be a part of that:

“Bitcoin’s use of the blockchain technology is not very efficient. It uses a validation mechanism for transactions that is environmentally destructive that doesn’t scale up very well…Given that bitcoin is not serving well as a medium of exchange, I don’t think it’s going to have any fundamental value other than whatever investor’s faith leads it to have”

Prasad continued to talk about the competition in the cryptocurrency market and how the central banks may get involved. The professor of economics reminded his audience that there are newer cryptocurrencies that use blockchain technology far more efficiently than Bitcoin and that Bitcoin is not very efficient and can’t scale. However, he failed to mention Bitcoin’s dominance over the entirety of the cryptocurrency market.

He said that cryptocurrencies “lit a fire under central banks to start thinking about issuing digital versions of their currencies” Prasad also mentioned that central bank digital currencies “could be good in many ways in terms of providing an additional payment option, a low-cost payment option that everybody has access to, increasing financial inclusion, and potentially also increasing financial stability.” The narrative of embracing decentralized finance but recommending “centralized digital versions” of already existing (centralized) currencies is nothing but concerning.

Bitcoin Is The Reserve Currency Of The Cryptocurrency Market

Bitcoin is the pioneer of all cryptocurrencies, and because of that, investors often think of Bitcoin as the reserve currency of the cryptocurrency market. Not only that, but the cryptocurrency market depends heavily on only one coin, and that’s Bitcoin. Furthermore, it is becoming more feasible to believe that Bitcoin has even a higher potential:

Overall, Prasad knows that blockchain technology and DeFi are here to stay. Still, his belief that Bitcoin “may not last longer” is difficult to square, given that Bitcoin is the reserve currency of the crypto market.

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