Nobel Prize winner predicts bitcoin’s collapse to $ 0 in 10 years

Nobel Prize-winning economist Eugene Fama has predicted that bitcoin BTC $95,443.84 Bitcoin -1.13% Market capitalization $1.89 trillion VOL. 24 hours $0.94 billion will lose all of its value over the next decade. In an interview with the Capitalisn’t podcast, Fama, who is called the «father of modern finance,» said that the probability of bitcoin falling to zero is «close to 100%.»

According to the economist, cryptocurrencies contradict the fundamental principles of monetary theory due to their instability. He noted that a medium of exchange cannot have such a volatile real value, as this makes it unsuitable for use in business. Fama also criticized the energy intensity of the mining process, arguing that such a financial system is not sustainable due to the huge cost of computing resources.

His comments came after a record year for bitcoin, when its price reached $ 109,000. However, Fama is not the only famous economist who is skeptical about cryptocurrencies. Nobel Prize winner Paul Krugman called bitcoin «economically useless,» and economist Justin Wolfers criticized the idea of creating a national bitcoin reserve proposed by Donald Trump.

As of the time of publication, bitcoin was trading at $ 94,421, having lost 5.31% over the past day. Despite the decline, the market is closely monitoring further developments in the field of cryptocurrencies and their regulation.