Economist Eugene Fama, winner of the Nobel Prize in Economics in 2013 and considered the “father of modern finance”, stated that Bitcoin could lose all its value in the next ten years.

In an interview with the Capitalisn’t podcast, Fama argued that cryptocurrencies have no intrinsic value and that their economic sustainability is questionable.

Eugene Fama believes cryptocurrencies have no real value

While acknowledging the difficulty of financial forecasts, the economist stressed that his analysis is based on economic fundamentals. He explained that without a central issuer or cash flow generated by productive assets, Bitcoin has no structural support to maintain its appreciation.

The statement comes as Bitcoin's price has surpassed the $100,000 mark, fueled by President Donald Trump's crypto-friendly policies. Market analysts say the digital currency could reach $150,000 during his term. Others are betting on $200,000 by the end of this year.

Could Bitcoin Be a “Bubble”? Nobel Prize Winner Says Yes

Fama also commented on the possibility of Bitcoin being in a bubble. “I hope so,” he said, adding that while he cannot predict when the bubble will burst, he considers the cryptocurrency’s appreciation to be a temporary phenomenon.

I can't predict when it will burst, so I hope it will burst, but I can't predict it. I hope it does because otherwise we'll have to start all over again with monetary theory, said the Nobel laureate in economics.

He criticized the indiscriminate use of the term “bubble” without a clear definition and stated that financial events need to have a foreseeable end to be categorized in this way.

Nobel admits he may be wrong, but chances are high

When asked about the probability of Bitcoin hitting zero in ten years, Fama stated that the chances are high, approaching 1 in his estimate. However, he acknowledged that he could be wrong and that his prediction is based on the principles of monetary theory.

The economist's view contrasts with the current reality of the crypto market, which already exceeds US$2 trillion in total value. While investors continue to bet on the appreciation of the digital currency, Fama's predictions reinforce the debate about Bitcoin's long-term sustainability.

Nobel Economics paper predicts Bitcoin will be worthless within a decade appeared first on BeInCrypto Brasil.