Nobel laureate in economics blasts BTC: zero within 10 years, TradFi stay away from being dragged down

Eugene F. Fama, hailed as the 'father of modern finance,' recently launched a scathing attack on BTC on the Capitalisn't Podcast, bluntly stating that it is 'worse than air, with no practical use,' and predicting that the BTC bubble will burst within 10 years. (Background: BTC: golden cross in the housing market: the crypto world's KOL buys in Taipei, TSMC engineers sell off, and the construction volume hits a 5-year low) (Additional context: Declining attractiveness of BTC? JPMorgan: Over 70% of traders have no intention of trading Virtual Money this year) BTC is often the target of criticism from TradFi professionals, with common doubts including high Fluctuation, lack of Intrinsic Value, and its minimal use in daily payments as a currency. Recently, Nobel Prize-winning economist and 'father of modern finance' Eugene F. Fama made sharp criticisms of BTC on the Capitalisn't Podcast. 'BTC is worse than air,' Eugene said, stating that cryptocurrency itself is a mystery because it violates the basic principle of being a medium of exchange: 'It lacks stable real value, and its price fluctuates dramatically, making such a currency unsustainable in the long run.' Regarding BTC being regarded as 'digital gold,' Eugene is equally skeptical. He emphasizes, 'Only assets with actual utility deserve to be called digital gold. Without utility, it is not even as good as a piece of paper, just empty talk, not even worth considering as air.' He further stated that according to existing monetary theories, cryptocurrency should not have survived until now: 'I hope BTC collapses because if it doesn't, it means we have to overturn the existing monetary theory and start over. Perhaps the current theory is no longer applicable, but in any case, it needs to be reconsidered.' Predicting BTC to go to zero within 10 years, Eugene forecasts that the rise of cryptocurrency has a predictable outcome because 'attempting to build an entire financial system on Blockchain is unrealistic and requires massive 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 accountable for this prediction, right?' He added that once the cryptocurrency industry collapses, many companies may ultimately turn to the government for bail-out funds. He then advocated for a clear distinction between Cryptocurrency and TradFi systems to avoid dragging down the entire economy in dealing with the aftermath if the industry collapses. However, with BTC and Ether spot ETFs listed, the SEC formally abolishing accounting standards SAB121 that prevent banks from custodianship of encryption assets, and the FDIC planning to amend and remove discriminatory policies against cryptocurrency, along with many initiatives aiming to put TradFi assets on the chain and stable coin Settlement mechanisms proving to have practical benefits, 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 a political nuclear weapon'; Democratic victory could lead to close all positions dumping; Depth analysis: Will the US dollar really collapse? Should the US build BTC reserves? The altcoin season may have ended as early as 2024? Analyst: BTC dominance needs to reach 71% to return again. 'Nobel Prize-winning economist lashes out at BTC: to 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 outlet.