Bitcoin cryptocurrency is predicted to be depressed in the short term. There are even those who predict the presence of Bitcoin will not last long as a commodity.
One of these estimates was conveyed by the CEO of crypto lending Nexo, Antoni Trenchev. Quoting CNBC International, Trenchev said Bitcoin may fall in tandem with traditional financial markets as the Federal Reserve begins to roll back its massive monetary stimulus program.
Then, a senior professor of international trade policy at Cornell University Eswar Prasad said Bitcoin would be short-lived.
“Bitcoin itself may not last much longer,” he said in a Squawk Box Europe interview at the end of 2021.
There are a number of reasons behind this. First, Bitcoin is considered less environmentally friendly and inefficient.
“Bitcoin’s use of blockchain technology is very inefficient. Bitcoin’s carbon footprint is larger than the whole of New Zealand,” said the author of “The Future of Money: How the Digital Revolution is Transforming Currencies and Finance”.
Bitcoin is also said to not function well as a medium of exchange. He said there was no fundamental value.
“Given that Bitcoin doesn’t function well as a medium of exchange, I don’t think it will have any fundamental value other than whatever investor confidence it has,” Prasad said.
He believes Bitcoin will be eroded by hundreds of other cryptocurrencies that are now emerging with a number of advantages. However, he does not deny that Bitcoin has sparked a profitable revolution, directly or indirectly.