According to Nobel Prize-winning economist Eugene F. Fama, Bitcoin, the world’s most popular cryptocurrency, may become worthless in the next 10 years. This prediction comes amidst Bitcoin’s recent price volatility and ongoing debates over its long-term viability. Despite hitting an all-time high market capitalization of $2 trillion in December 2024, doubts about Bitcoin’s future persist.
On Thursday, Bitcoin’s price fell by nine percent, but market analysts believe the dip could be temporary. With pro-crypto policies recently implemented under President Donald Trump, they expect a price surge in the coming months. However, Fama, according to Nobel Prize-winning economist Eugene F. Fama, Bitcoin, the world’s most popular cryptocurrency, may become worthless in the next 10 years as the “father of modern finance” remains unconvinced, dismissing Bitcoin’s value as unsustainable without real-world utility. He argues that if Bitcoin lacks practical use, it is essentially worthless.
Fama criticizes Bitcoin’s unstable value.
During a recent episode of the podcast Capitalisn’t, Fama explained why he believes Bitcoin and other cryptocurrencies defy the core principles of a reliable medium of exchange. He pointed out that a currency should have a stable real value, but Bitcoin’s price swings wildly, making it unreliable for everyday transactions. According to Fama, financial instruments without stability or intrinsic value are unlikely to survive long.
Fama also expressed concerns about the risks posed by integrating cryptocurrencies into the traditional financial system. He warned that such volatile and speculative assets could destabilize the system, undermining established monetary theories. He added that if Bitcoin does not collapse soon, economists may have to rethink the very foundations of economic policy.
Bitcoin’s volatility and critics
Bitcoin’s volatility and lack of intrinsic value have been long-standing criticisms. Over the years, prominent figures such as Ray Dalio and Larry Fink of BlackRock have dismissed Bitcoin as a speculative bubble or a tool for illicit activities. Regulatory challenges and scalability issues have also plagued the cryptocurrency. Additionally, environmental concerns over the energy-intensive process of Bitcoin mining have fuelled further skepticism.
President Donald Trump, who had previously criticized cryptocurrencies as “not money” and “based on thin air,” has changed his stance. During his second term, Trump launched his cryptocurrency meme coin, now reportedly valued at over $50 billion. His administration’s pro-crypto policies have stirred optimism among some investors, who believe these measures could drive Bitcoin’s market to new heights.
Bitcoin’s current market status
According to CoinGecko, Bitcoin is trading at approximately $97,326 as of February 7, with its global market capitalization surpassing $3 trillion. While Bitcoin continues to dominate the crypto landscape, its future remains uncertain. Critics like Fama believe the bubble could burst, while supporters remain hopeful that regulatory clarity and innovation will stabilize the digital currency’s role in the global economy.
For now, the debate rages on. Bitcoin’s potential to revolutionize or implode the financial system continues to be a hot topic, leaving investors to grapple with its promise and peril.
