Eugene F. Fama, known as the 'father of modern finance,' recently fiercely criticized BTC on the Capitalisn't Podcast, stating that it is 'no better than air, with no practical use,' and predicted that the BTC bubble will burst within 10 years. (Background: BTC. Real estate, gold cross: the crypto world, KOL buys in Taipei, TSMC engineer sells, new low in project construction) (Background: Declining attractiveness of BTC? JPMorgan: Over 70% of traders have no intention to buy or sell cryptocurrencies) BTC is often the focus of criticism from TradFi professionals, with common doubts including high volatility, lack of intrinsic value, and being rarely used for daily payments as a currency. Recently, Eugene F. Fama, Nobel laureate in economics and known as the 'father of modern finance,' made sharp criticisms of BTC on the Capitalisn't Podcast. Eugene bluntly stated that BTC is even worse than air, as cryptocurrency itself is a mystery because it violates the basic principle of being a medium of exchange: 'It does not have a stable real value, and its price fluctuates dramatically. Such a currency cannot exist in the long term.' Regarding BTC being considered 'digital gold,' Eugene is equally dismissive. He emphasized, 'Only assets with practical use can be called digital gold. If it has no use, it is even worse than a piece of paper, just empty talk, not even as valuable as air.' He further stated that according to existing currency theory, cryptocurrency like BTC should not have survived to this day: 'I hope BTC will collapse because if it doesn't, it means we need to overthrow the existing currency theory and start over. Perhaps the current theory no longer applies, but in any case, we must rethink it.' Predicting BTC to go to zero within 10 years, Eugene said that the rise of cryptocurrency has a predictable ending because 'trying to build the entire financial system with blockchain is unrealistic and requires huge computational resources.' As for when the bubble will burst, he half-jokingly said, 'I dare to predict that the BTC bubble will burst within 10 years. After all, I'm 86 years old, so I shouldn't be held responsible for this prediction, right?' He added that once the cryptocurrency industry collapses, many companies may eventually turn to the government for help and seek bailout funds. He then advocated that cryptocurrency should draw a clear line with the TradFi system to avoid dragging down the entire economy in the event of an industry collapse. However, with the listing of BTC and Ether spot ETFs, the SEC officially abolishing accounting standards (SAB121) that prevent banks from custodializing cryptocurrencies, and the Federal Deposit Insurance Corporation (FDIC) planning to modify and remove discriminatory policies against cryptocurrency, as well as many initiatives to bring TradFi assets onto the blockchain and the proven effectiveness of stablecoin settlement mechanisms, these developments indicate that the cryptocurrency industry is not in opposition to TradFi but rather has the opportunity to thrive and complement each other. Related reports: Arthur Hayes warns: BTC reserves 'may become political nuclear weapons,' Democratic victory or dumping all positions Derinlik: Will the US dollar really collapse? Should the US establish BTC reserves? Altcoin season already ended in 2024? Analyst: BTC's dominance must reach 71% for a comeback 〈Nobel laureate in economics launches a scathing attack on BTC: Zero within 10 years, stay away from TradFi to avoid being dragged down〉 This article was first published on BlockTempo, the most influential blockchain news media in Taiwan.
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Nobel Ekonomi Ödülü sahibi BTC'yi eleştiriyor: 10 yıl içinde sıfıra düşecek, TradFi'ye dokunmayın ve çekilmeyin.
Eugene F. Fama, known as the 'father of modern finance,' recently fiercely criticized BTC on the Capitalisn't Podcast, stating that it is 'no better than air, with no practical use,' and predicted that the BTC bubble will burst within 10 years. (Background: BTC. Real estate, gold cross: the crypto world, KOL buys in Taipei, TSMC engineer sells, new low in project construction) (Background: Declining attractiveness of BTC? JPMorgan: Over 70% of traders have no intention to buy or sell cryptocurrencies) BTC is often the focus of criticism from TradFi professionals, with common doubts including high volatility, lack of intrinsic value, and being rarely used for daily payments as a currency. Recently, Eugene F. Fama, Nobel laureate in economics and known as the 'father of modern finance,' made sharp criticisms of BTC on the Capitalisn't Podcast. Eugene bluntly stated that BTC is even worse than air, as cryptocurrency itself is a mystery because it violates the basic principle of being a medium of exchange: 'It does not have a stable real value, and its price fluctuates dramatically. Such a currency cannot exist in the long term.' Regarding BTC being considered 'digital gold,' Eugene is equally dismissive. He emphasized, 'Only assets with practical use can be called digital gold. If it has no use, it is even worse than a piece of paper, just empty talk, not even as valuable as air.' He further stated that according to existing currency theory, cryptocurrency like BTC should not have survived to this day: 'I hope BTC will collapse because if it doesn't, it means we need to overthrow the existing currency theory and start over. Perhaps the current theory no longer applies, but in any case, we must rethink it.' Predicting BTC to go to zero within 10 years, Eugene said that the rise of cryptocurrency has a predictable ending because 'trying to build the entire financial system with blockchain is unrealistic and requires huge computational resources.' As for when the bubble will burst, he half-jokingly said, 'I dare to predict that the BTC bubble will burst within 10 years. After all, I'm 86 years old, so I shouldn't be held responsible for this prediction, right?' He added that once the cryptocurrency industry collapses, many companies may eventually turn to the government for help and seek bailout funds. He then advocated that cryptocurrency should draw a clear line with the TradFi system to avoid dragging down the entire economy in the event of an industry collapse. However, with the listing of BTC and Ether spot ETFs, the SEC officially abolishing accounting standards (SAB121) that prevent banks from custodializing cryptocurrencies, and the Federal Deposit Insurance Corporation (FDIC) planning to modify and remove discriminatory policies against cryptocurrency, as well as many initiatives to bring TradFi assets onto the blockchain and the proven effectiveness of stablecoin settlement mechanisms, these developments indicate that the cryptocurrency industry is not in opposition to TradFi but rather has the opportunity to thrive and complement each other. Related reports: Arthur Hayes warns: BTC reserves 'may become political nuclear weapons,' Democratic victory or dumping all positions Derinlik: Will the US dollar really collapse? Should the US establish BTC reserves? Altcoin season already ended in 2024? Analyst: BTC's dominance must reach 71% for a comeback 〈Nobel laureate in economics launches a scathing attack on BTC: Zero within 10 years, stay away from TradFi to avoid being dragged down〉 This article was first published on BlockTempo, the most influential blockchain news media in Taiwan.