Bitcoin Will Crash To Zero Within A Decade, Nobel-Winning Economist Claims

Despite Bitcoin having a robust global community, established infrastructure, and historical resilience, doomsayers are always predicting the apex crypto’s downfall.

Nobel laureate Eugene Fama, sometimes called the “Father of Modern Finance,” is the latest critic to suggest that Bitcoin will reach a value of $0. Fama claimed that the top crypto would become worthless within 10 years.

How Bitcoin Goes To Zero

Economist Eugene F. Fama has issued a cataclysmic BTC prediction — warning during an interview with the Capitalisn’t podcast that Bitcoin’s parabolic upsurge has “a predictable ending.”

Fama reasoned that it would be “unsustainable” for a whole financial system to be built using blockchains because this would require an insane amount of computing power — and “all we know about monetary theory” indicates cryptocurrencies should not survive.

“Cryptocurrencies are such a puzzle because they violate all the rules of a medium of exchange,” Fama explained. “They don’t have a stable real value. They have highly variable real value. That kind of a medium of exchange is not supposed to survive.”

Crypto propounders have long-hailed Bitcoin as “digital gold” and a hedge against inflation rather than a cryptocurrency suited to everyday payments. However, Fama is not convinced by this argument.

“It’s only digital gold if it has a use. If it doesn’t have a use, it’s just paper. Not paper, it’s air, not even air,” the economist opined.

Bitcoin is currently holding at just above $96,000, making it the world’s seventh-largest asset with a $1.91 billion market cap, as per data from Infinite Market Cap. 

“I can’t predict when it will bust. I’m hoping it will bust, but I can’t predict it. I’m hoping it will bust because if it doesn’t, we have to start all over with monetary theory. It’s gone. It might be gone already, but you have to start all over,” Fama stated when asked whether he was ready to call this a bubble.

In his opinion, this bubble would burst in 10 years, adding that if Bitcoin implodes, there’s a possibility the cryptosphere will go “running to the government” for a bailout. Fama further asserted that the crypto space should not be put in the same basket as the traditional financial system, meaning the broader economy won’t have to put the crypto industry back together if it collapses.

However, ties between Wall Street and the crypto sector seem to be strengthening following the introduction of spot Bitcoin and Ethereum ETFs and the repeal of the SEC’s SAB 121 accounting rule that discouraged banks from taking custody of crypto assets. As such, separating the two sectors would be extremely difficult.

Meanwhile, cryptocurrencies have endured a major sell-off in recent days. BTC has nosedived below the $100,000 mark, falling by around 9% over the last seven days. Other major cryptos like Ripple’s XRP, Dogecoin (DOGE), and Cardano (ADA) are all well off of their historic highs.