People have always doubted Bitcoin, but when an economist winner of the Nobel Prize has declared that he would eventually fail, many have been careful.
Eugene Fama, known as “father of modern finance”, thinks that bitcoin is ultimately worth nothing. What is his reason? Bitcoin has no real value, does not work well for purchase and sale and does not correspond to ordinary banking systems. Does his case have a sense?
Bitcoin weaknesses: a deadly flaw or evolution poorly understood?
Fama is mainly concerned about the way Bitcoin is unpredictable. For a currency to work well, it must be stable. Bitcoin changes a lot of value, making it difficult for companies to accept it as payment. Fama thinks that the uncertainty of Bitcoin makes it difficult to use to buy and sell things.
He also maintains that Bitcoin does not have the support of a central authority. Unlike the fiduciary currencies, which governments support, Bitcoin derives value only from speculation and market demand. If the request disappears, the price goes to zero. This is his main thesis, but is it the whole story?
The winner of the Nobel Prize Eugene Fama predicts that Bitcoin will become worthless https://t.co/smpqyoodmh via @Promarket_org
– The activist investor (@activistinvestr) January 31, 2025
The value debate store: is Bitcoin Digital Gold?
Critics of Fama’s argument underline that Bitcoin is not only trying to be a currency – it evolves towards something else. Many see it as digital gold, a reserve of immune value against inflation and government control. Unlike traditional currencies, Bitcoin has a fixed offer of 21 million pieces, which makes it rare and potentially deflationary.
New: “Nobel Laureat” Eugene Fama predicts that Bitcoin “will go at $ 0 in 10 years”
What an idiot 🤡 pic.twitter.com/dvz4x4y2ol
– The Bitcoin historian (@pete_rizzo_) January 30, 2025
In this sense, Bitcoin volatility could be a characteristic rather than a defect. Gold is not used in daily transactions, but it has immense value because of its rarity and its historical confidence. If Bitcoin follows a similar trajectory, it can never be widely used for payments, but that does not mean that this is worth nothing.
What would Bitcoin go to zero?
For Bitcoin to really collapse, some extreme scenarios should take place. A global ban could crush demand, which makes investors difficult to hold or negotiate. A technological failure – like a catastrophic bug in the Bitcoin protocol – could undermine confidence. Or a higher alternative could replace it.
But history suggests that Bitcoin is resilient. He has survived several accidents, regulatory repression and criticism of financial heavyweights. Each time, he bounced stronger. Could Fama be long term? Maybe. But betting against Bitcoin turned out to be a losing match so far.
The verdict: a polarizing future to come
Bitcoin’s future remains uncertain and opinions are as divided as ever. Although some believe that it is condemned, others see him as a revolutionary financial instrument. The reality? Bitcoin is still evolving and its fate will depend on adoption, regulations and market forces.
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