Bitcoin, once dismissed by many as a fleeting fad, has garnered renewed attention after a prominent economist warned it would eventually fail. Eugene Fama, known as the “father of modern finance,” believes that Bitcoin lacks fundamental value due to its volatility and lack of backing from central authorities.
Fama argues that Bitcoin’s unpredictability makes it unsuitable for use in transactions, while its reliance on market speculation and demand renders it vulnerable to collapse. However, critics counter that Bitcoin is evolving into something more than just a currency – a store of value immune to inflation and government control.
With a fixed supply of 21 million coins, Bitcoin has built scarcity and potential deflationary effects. Its volatility could be seen as a feature rather than a flaw, similar to gold. For Bitcoin to truly collapse, extreme scenarios such as a global ban or technological failure would need to occur.
History, however, suggests that Bitcoin is resilient, having survived multiple crashes and regulatory setbacks. While Fama’s prediction may hold some merit in the long run, betting against Bitcoin has proven to be a losing game so far.
The future of Bitcoin remains uncertain, with opinions divided on its potential. As it continues to evolve, its fate will depend on adoption, regulation, and market forces. One thing is certain – Bitcoin’s journey as a revolutionary financial instrument is far from over.
Source: https://bitcoinist.com/bitcoin-will-be-worthless-in-10-years-finance-nobel-prize-winner-says