Nobel Laureate Eugene Fama Predicts Bitcoin Will Be Worth $0 in 10 Years

Eugene Fama, a Nobel Prize-winning economist and often referred to as the 'father of modern finance', has offered a pessimistic outlook on the future of Bitcoin.

Nobel Prize-winning economist Eugene Fama has predicted that Bitcoin will likely be worthless in 10 years.

According to major crypto media outlets including ProMarket and Crypto News on Thursday, Professor Fama stated in the podcast "Capitalisn't" on December 30 that Bitcoin cannot function as a currency, asserting, "The probability of Bitcoin's value dropping to $0 in 10 years is almost 100%."

He pointed out that Bitcoin "fails to maintain stable real value and has highly variable real value," adding that "due to its limited supply, its price is entirely determined by demand, leading to extreme volatility, making it unsuitable as a medium of exchange."

Moreover, he strongly criticized, saying, "I hope Bitcoin collapses. Otherwise, we will have to redefine monetary theory from scratch." However, he also noted that his prediction might not be accurate, admitting, "There is a possibility of being completely wrong."

Also, Professor Fama highlighted the "51% attack" as a major risk for Bitcoin. If a certain group controls more than 51% of the network, they can manipulate transactions or control the network, posing a threat to security.

He analyzed that if governments and central banks around the world choose to strictly regulate cryptocurrencies, the value of Bitcoin could plummet.

He noted that "unlike gold, Bitcoin has no practical use." Gold is utilized in jewelry, electronic components, and industrial applications, while Bitcoin lacks such tangible uses.

On the other hand, he expressed a more positive outlook on stablecoins. In particular, he mentioned that "dollar-based stablecoins have the potential to be recognized for their value," adding, "Since the dollar has stable value, if utilized on the blockchain, there is potential."

Meanwhile, Bitcoin prices are sharply declining as the U.S. tariff war reignites. At 2 PM on Thursday (Eastern Time), Bitcoin was trading at $97,759, down 5.0% from 24 hours ago, falling below the $100,000 mark.

After recording the $105,000 range on December 31, it has continued to decline for three consecutive days. Notably, after barely maintaining the early $100,000 range on the night of January 1, it fell sharply, losing the $100,000 level.

With Professor Fama's outlook and Bitcoin's sharp decline coinciding, debates about Bitcoin's future are expected to intensify in the market.

Crypto media outlet CoinDesk analyzed that "the mass deportation policy of illegal immigrants in the U.S., together with the resumed trade war, could aggravate inflation, making it difficult for the Federal Reserve (Fed) to cut interest rates."