Nobel Laureate Thinks Bitcoin Is Going to Zero – Decrypt

The Nobel Prize-winning economist predicts that Bitcoin will reach zero within 10 years.

Eugene F. Fama is often referred to as the “father of modern finance.” I said Not Capitalis Podcast This rise in digital assets has a “predictable ending.”

He argued that using blockchain to build an entire financial system proves “unsustainable.”

“Cryptocurrency is a very puzzle because it violates all the rules of the medium of exchange,” Fama said. “They have no stable, real value. They have a very fluctuating, real value. Such a medium of exchange is not supposed to survive.”

With 21 million coins fixed, Bitcoin is positioned as a hedge against “digital gold” and inflation rather than a cryptocurrency suitable for everyday payments. However, this argument is not too heavy on Fama.

“It's digital gold only if it's used. If it's not used, it's just paper. It's not paper, it's air, and there's no air, even air,” the economist said.

Bitcoin is currently the seventh most valuable asset in the world, with its total market capitalization approaching $2 trillion. Infinite market capitalization. At the time of writing, Bitcoin prices are just above $97,000, a 1.1% slash compared to yesterday, according to Coingecko data.

When asked if he was ready to call this a bubble, Fama said: “I can't predict when it will be busted. I would say it will be busted. I hope, but I can't predict it. That's because we have to start with just financial theory.

Fama said he was happy to say the bubble would burst in 10 years. That's because he's 86 years old and “it's pretty unlikely that I'll have to pay for this.”

And he said that if the crypto sector explodes, it is likely that the crypto sector will “run to the government” for bailouts.

He went on to argue that crypto space should be stored separately from the traditional financial system. So, if the industry collapses, the wider economy doesn't have to “pick up the pieces.”

Given the increasingly close connection between Wall Street and the code, a thru-spot Bitcoin and Ethereum Eliminating ETFs and regulations that have prevented banks from being detained on digital assets can prove difficult.

Edited by Stacy Elliott.