Bitcoin Might Be ‘Worthless’ in a Decade, According to Nobel Prize Winner

A recent statement from Nobel Prize-winning economist Eugene Fama has sent shockwaves through the cryptocurrency community. Fama, known as the “father of modern finance,” claims that Bitcoin will become worthless in the next 10 years. But is his prediction based on solid grounds, or is it just another case of a traditional finance expert misunderstanding the digital asset?

The Reasons Behind Fama’s Assertion

According to Fama, Bitcoin’s lack of backing from a central authority and its reliance on speculation and demand make it a fragile asset. In an interview with Luigi Zingales and Bethany McLean on the Capitalisnt podcast, Fama explained that Bitcoin’s volatility and inability to facilitate seamless buying and selling make it unsuitable as a medium of exchange. He also pointed out that currencies need to be stable to function effectively, which is not the case with Bitcoin.

Nobel Prize-winning economist Eugene Fama predicts Bitcoin will become worthless in 10 years due to its lack of central authority backing and reliance on speculation. However, crypto experts argue that Bitcoin’s use cases go beyond being a currency.

However, several crypto experts have dismissed Fama’s argument, pointing out that Bitcoin’s use cases have evolved beyond being a mere currency. They argue that Bitcoin has become a form of digital gold, with its limited supply of 21 million creating scarcity and making it deflationary. Moreover, Bitcoin is seen as an inflationary hedge that follows the trajectory of gold.

Fama is not the only prominent figure to have criticized Bitcoin in the past. Warren Buffett, Jamie Dimon, and Christine Lagarde have all expressed their skepticism about the digital asset. However, despite these criticisms, several countries, including the US, are exploring the integration of Bitcoin into their strategic reserves. The Czech Republic has even approved a proposal to allocate 5% of its €140 billion reserves to Bitcoin.

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As the debate around Bitcoin’s value and potential continues, one thing is certain: the cryptocurrency community will be watching Fama’s prediction closely to see if it comes to pass. At the time of writing, Bitcoin was trading at $95k, having declined by 3% in the last 24 hours. Only time will tell if Fama’s prediction will prove correct or if Bitcoin will continue to defy its critics.

Nobel Prize-Winning Economist Predicts Bitcoin’s Downfall: Will it Really Become Worthless?

Source: Bitcoin Might Be Worthless In A Decade According To Nobel Winner | Crypto-news-flash.com

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