The defi promise is real, but Bitcoin may not last long-

An economic professor at Cornell University says that the promise of decentralized financing (Defi) is real using blockchain technology, but may not last for so long. Nevertheless, he admitted that Bitcoin "really triggered a revolution from which we could all benefit either directly or indirectly".

business professor doubts the future of Bitcoin, praises Defi

Eswar Prasad, Professor of Economics at Cornell University, spoke in a recently published interview with CNBC about Bitcoin, cryptocurrencies, blockchain technology, decentralized finance (DEFI) and digital currencies of the central banks

Prasad, author of "The Future of Money: How the Digital Revolution is Transforming Currencies and Finance", is Nandlal P. Tolani Senior for Commercial Policy and Professor of Economics at the Charles H. Dyson School of Applied Economics and Management at Cornell University. Previously, he was head of the Finanz Studies department in the research department of the International Monetary Fund (IMF) and head of the China department of the IWF.

He found that blockchain technology in finance and in the way we carry out our daily transactions will be "fundamentally transforming", and said:

The promise of decentralized financing using blockchain technology is real, but Bitcoin itself may not last long.

The business professor said: "The use of blockchain technology by Bitcoin is not very efficient. It uses a validation mechanism for environmentally destructive transactions that cannot be scaled very well."

He claimed that there are newer cryptocurrencies that use blockchain technology much more efficiently than Bitcoin.

"With all assets, the question arises where the fundamental promise of values ​​is," he continued and added:

given the fact that Bitcoin does not serve as a medium, I do not think that it will have a different fundamental value than the belief of the investor.

he continued to discuss currency competition and stable coins. "There is an interesting element of the currency competition that it has triggered. There are now stable coins that could basically create more effective transaction routes," he said.

The professor added that cryptocurrencies "have lit a fire under the central banks to think about the issue of digital versions of their own currencies".

Professor Prasad said that digital currencies of the central banks (CBDCs) could "be good in many ways in order to provide an additional payment option, an inexpensive payment option to which every access has to increase financial inclusion and possibly also increase financial stability".

he closed:

as much as you may not like Bitcoin, it really triggered a revolution from which we could all benefit either directly or indirectly.

Do you agree to Professor Eswar Prasad? Let us know in the comment area below.

Kevin Helms

Kevin, a student of Austrian economics, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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