Renowned economist Eugene Fama predicts that Bitcoin will be worthless within the next decade due to its failure to meet traditional criteria for a medium of exchange. According to Fama, cryptocurrencies like Bitcoin “violate all the rules of a medium of exchange” because they lack a stable real value. This sentiment has angered some in the crypto community, who see it as a bubble that will eventually burst.
Fama, known for his efficient markets hypothesis, argues that Bitcoin’s value is highly variable and unpredictable, making it unsuitable for widespread adoption as a currency. However, he does acknowledge that using stablecoins, which are pegged to the value of a traditional currency like the US dollar, could potentially work. Additionally, Fama sees gold as a more favorable store of value due to its multiple uses.
While Fama’s predictions are not expressed with utmost confidence, his openness to adapting his views at an advanced age is seen as remarkable by co-host Luigi Zingales.
Source: https://crypto.news/bitcoin-will-eventually-be-zero-economist-predicts-heres-when