Staff Reporter
Eugene Fama, the Nobel Prize-winning economist often referred to as the “Father of Modern Finance,” has made a bold prediction about Bitcoin’s future, stating it could be worthless in just a decade, according to Bitcoinist.
Fama bases his thesis on two main points. First, he highlights Bitcoin’s extreme volatility, which renders it an unreliable payment method. Second, he notes that unlike fiat currencies, which are backed by government support, Bitcoin lacks any central authority.
This week, market fluctuations, exacerbated by President Trump’s tariffs, have caused turmoil in the cryptocurrency space, pushing Bitcoin down to a three-week low of $94,476.18.
Despite these challenges, Bitcoin enthusiasts maintain that the leading cryptocurrency is transforming into a digital gold equivalent, positioning it as a valuable asset for the future.
Supporters of Bitcoin argue that the cryptocurrency is resistant to inflation and government interference, emphasizing its limited supply of just 21 million coins, which contributes to its scarcity. They view the inherent volatility as an advantage rather than a disadvantage, likening Bitcoin to gold in that it doesn’t need widespread use for payments to hold significant value.
Critics like Eugene Fama, who suggest Bitcoin could drop to zero, are seen as misguided by these enthusiasts. They assert that a global ban on Bitcoin is unlikely, even though the technology could face temporary disruptions or competition from other cryptocurrencies.
Despite challenges, Bitcoin has shown remarkable resilience, surviving numerous market crashes and regulatory threats. Both supporters and opponents acknowledge that Bitcoin continues to evolve, and its ultimate role in banking and payments remains to be fully defined.
