Cornell Economist Says Bitcoin Has 3 Flaws Driving People to Search for Better Alternatives – Featured Bitcoin News
Cornell University economics professor and former head of the IMF’s China division, Eswar Prasad, sees three major flaws in Bitcoin. Because of these shortcomings, the professor says that “Bitcoin has really sparked a search for a better alternative”.
Cornell University economics professor outlines Bitcoin’s shortcomings
Cornell economics professor Eswar Prasad spoke about Bitcoin’s shortcomings in an interview with CNBC on Thursday.
Prasad is Nandlal P. Tolani Senior Professor of Trade Policy and Professor of Economics at the Charles H. Dyson School of Applied Economics and Management at Cornell University. He is also a Senior Fellow at the Brookings Institution. Previously, he was head of the financial studies department in the research department of the International Monetary Fund (IMF) and prior to that he was head of the China department of the IMF.
The first mistake concerns the energy consumption of Bitcoin mining, which, according to Prasad, “is certainly not good for the environment”. The professor pointed out that Ethereum, on the contrary, is coming up with it a method “This will be a lot less energy intensive and could offer many of the benefits that Bitcoin should offer.” He added:
It could also make transactions a lot cheaper and faster.
The second point the professor made was that Bitcoin isn’t that anonymous after all. He cited the Colonial Pipeline case in which police claimed recovered $ 2.3 million in Bitcoin. He noted that other cryptocurrencies may offer more anonymity than BTC, like Monero and Zcash.
The third mistake, according to the professor, is that Bitcoin doesn’t work well as a currency. He described BTC Transactions as “slow and cumbersome” for use in payments, adding that the market is very volatile and cryptocurrency has become a speculative asset. Prasad concluded:
So Bitcoin has really sparked a search for a better alternative and people seem to be looking for a medium of exchange that doesn’t have to go through a trustworthy institution like the government or a commercial bank – but it’s not quite there yet.
Do you agree with the professor? Let us know in the comment section below.
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