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“Bitcoin is Going to Zero Within a Decade.”
Breaking down the arguments made by an economics expert.
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Renowned American economist Eugene Fama expects Bitcoin to collapse to zero within a decade.
The 2013 Nobel laureate and co-creator of the Fama–French three-factor model (used in analysing stock returns) shared his doubts about Bitcoin’s long-term viability in a recent episode of the Capitalisnt podcast (the interview with Fama begins around the nine-minute mark, and his Bitcoin/crypto insights commence around 14 minutes in).
Let’s analyse why he holds this view, and I’ll share my perspectives.
Bitcoin “goes against monetary policy”
He claims cryptocurrencies violate the rules of a medium of exchange, especially due to their wild volatility, which I partially agree with. However, I argue that altcoins with ultra-low fees and fast settlement times (e.g., XRP, SOL, LTC and XLM) provide better alternatives than conventional currency conversion services.
Crypto assets are much more than just a payment method: they are purported inflation hedges akin to gold, utility tokens, and highly portable censorship-resistant assets, to…
