Eugene Fama: Bitcoin Will Ultimately Be Worthless, Nobel Laureate Warns
Nobel laureate Eugene Fama, known for his work on asset pricing, believes bitcoin is on track to become worthless.
He expressed strong skepticism about cryptocurrency’s long-term viability, citing its extreme volatility and reliance on speculation. Fama argued that bitcoin’s fixed supply makes its value entirely demand-driven, causing fluctuations that prevent it from replacing traditional currency.
He also warned that government involvement, like President Trump’s suggestion to make bitcoin a strategic reserve, could drive its value to zero. Despite his doubts, Fama refrained from predicting when bitcoin’s collapse might happen but cautioned that its continued value could challenge core economic theories.
Clever Robot News Desk 5th February 2025
