While US President Donald Trump promotes crypto-positive policy in Washington, a leading American economist and 2013 Nobel Prize winner, predicts that bitcoin will lose all its value over the next 10 years.
“It is digital gold only if it has utility,” said Eugene Fama in podcast. “If it has no use, it is just paper. No, not even paper – it’s air, not even air.”
Opponents of bitcoin have long questioned its value due to its volatility, lack of intrinsic value, regulatory risks, limited suitability for payments, scalability issues, capital concentration, and environmental impact of mining.
“Cryptocurrencies are a mystery because they break all the rules of the medium of exchange,” Fama explained. “They don’t have a stable real value. They have an extremely volatile real value. Such a medium of exchange should not survive.”
Fama also emphasized the risks of integrating the traditional financial system with cryptocurrencies.
“I can’t predict when it will burst. I hope it will happen,” he said.
Eugene Fama won the Nobel Prize in Economics in 2013 together with Lars Peter Hansen and Robert Schiller for their research on the asset market.
As of today, BTC is trading at around $97,721. Meanwhile, the total market capitalization of cryptocurrencies has exceeded $3.2 trillion.
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