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According to the finance professor at the University of Santa Clara, the largest cryptocurrency in the world is starting to decline and is going to be useless.
Bitcoin rose above $ 19,000 at its peak a year ago, only to fall sharply. He is currently hovering around $ 3600, according to Coindesk.
"Basically the bitcoin was not at the height of its uproar," Atulya Sarin told FOX Business Stuart Varney on Thursday. "Especially if you look at all the activities around bitcoin, it's mostly about creating." It does not seem to have too many cases of use. "
Unlike paper money, which is supported by a central bank that decides when to print and distribute money, bitcoin is emitted through mining that uses computational power to keep a record of who owns the cryptocurrency. Without it, no transaction would be possible.
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Sarin said that at this moment the problem is that it costs more to my bitcoin than to own it – and "it is not sustainable".
"If there is no transaction and there is no trace of who owns what then all you have is a set of numbers and all those numbers are useless," he said.
Investors are not the only main obstacle for bitcoins and other cryptocurrencies; moreover, they are subjected to the pressures of regulators seeking a potential manipulation of the market.
