Bitcoin will Eventually be Zero, Economist Predicts

Tuesday, February 04, 2025

Eugene Fama, the renowned "Father of modern finance," predicts Bitcoin will be worthless in a decade.

Posted by Corky at 07:31 AM | 32 COMMENTS | permalink | Comment on This Entry |

Why? Cryptocurrencies "violate all the rules of a medium of exchange," Fama said on the Jan. 30 episode of Capitalisn't. "They don't have a stable real value. You know, they have highly variable real value. That kind of medium of exchange is not supposed to survive."

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"Fama, who authored the efficient markets hypothesis in the 1960s, didn't actually guarantee that Bitcoin will be worthless. Rather, he agreed when podcast host, finance professor Luigi Zingales, asked what the probability was that, "within 10 years, the value of Bitcoin would go to zero?"

"I would say it's close to one," Fama replied."

"Another big threat to Bitcoin voiced by Fama is 51% attack. Although such an attack would have been costly, Fama says that every transaction system faces "a problem of verification and a problem of who is enforcing the rules."

Fama, who was awarded with a Nobel Prize in economics in 2013, also insists that " unlike Bitcoin " gold is more favorable because it has many use cases. And the government's role in the crypto market may speed up the loss of value of Bitcoin.'

#1 | Posted by Corky at 2025-02-03 03:00 PM | Reply

Bitcoin is a non-linear ponzi scheme with no rules.

#2 | Posted by Angrydad at 2025-02-03 04:31 PM | Reply | Newsworthy 6

Bitcoin Will Eventually be Zero: Here's When

So my Trump Coin investments are still safe??!? Whew! You had me worried for a second.

#3 | Posted by censored at 2025-02-03 04:52 PM | Reply | Funny: 2

Bitcoin is backed by nothing.

Bitcoin is unsecure.

Bitcoin is a scam.

#4 | Posted by Nixon at 2025-02-04 09:23 AM | Reply

I think it's ff people will buy a computer bit. At least with the Tulip you had a flower... diseased though it might be... the sick ones had the most value... but I digress... ff.

#5 | Posted by RightisTrite at 2025-02-04 10:18 AM | Reply

Bitcoin is backed by nothing.

Bitcoin is unsecure.

Bitcoin is a scam.

#4 | POSTED BY NIXON AT 2025-02-04 09:23 AM | REPLY | FLAG:

Same can be said about the US dollar.

Right now the dollar has value only because you and I, to some degree, agree that it does.

#6 | Posted by lfthndthrds at 2025-02-04 12:50 PM | Reply

"Same can be said about the US dollar."

You sir, are a traitor and a fool.

No. It cannot.

Unlike crypto the dollar is backed by the full faith and credit of the United States.

America guarantees the worth of a dollar bill.

Until Trumpy destroys the full faith and credit of the "untied" states that is.

Then it will be worth nothing just like crypto.

Which is why the price of Gold skyrocketing.

#7 | Posted by donnerboy at 2025-02-04 12:58 PM | Reply

Cryptocurrencies are vehicles for criminal activity and naked speculation, nothing more, nothing less. Anyone who says otherwise is either too stupid to know better, or the president of the United States, or his chubby puppet master...

#8 | Posted by catdog at 2025-02-04 01:39 PM | Reply

#7 | Posted by donnerboy

What's golds value if the economy is destroyed and little to nothing is being produced? It may be a useful commodity for electronics and jewelry, for now. But you still can't eat it.

#9 | Posted by Whatsleft at 2025-02-04 01:41 PM | Reply

Can't remember the moniker, but the DR had a serious goldbug running around the places for ages. If it's possible to eat gold, he just might have found a way.

#10 | Posted by Doc_Sarvis at 2025-02-04 02:15 PM | Reply

Can't remember the moniker, but the DR had a serious goldbug running around the places for ages. If it's possible to eat gold, he just might have found a way.

Posted by Doc_Sarvis at 2025-02-04 02:15 PM | Reply

Iragoldberg perhaps??

#11 | Posted by LauraMohr at 2025-02-04 02:22 PM | Reply

- a serious goldbug

Zatoichi, right? Or was it Aflacababble (SP)

#12 | Posted by Corky at 2025-02-04 02:51 PM | Reply

It was Ray.

#13 | Posted by reinheitsgebot at 2025-02-04 02:53 PM | Reply | Newsworthy 1

Ray... of course. Thanks.

#14 | Posted by Corky at 2025-02-04 02:55 PM | Reply

Mr The DOW will be at 1,400 himself.

#15 | Posted by LauraMohr at 2025-02-04 03:02 PM | Reply

I was thinking of Ray. Thanks, all.

#16 | Posted by Doc_Sarvis at 2025-02-04 03:32 PM | Reply

Which is why the price of Gold skyrocketing.

#7 | POSTED BY DONNERBOY AT 2025-02-04 12:58 PM

Gold started this trajectory when Brandon and his build back better borrowing began. It's doubled in 4 years. I bought $50k worth of it when it was between $1200-$1500/oz as a hedge against the coming inflation.

#17 | Posted by lfthndthrds at 2025-02-04 04:27 PM | Reply

#10
It was Ray

#18 | Posted by Whatsleft at 2025-02-04 04:31 PM | Reply

Ray was industrious, though. He basically re-wrote the entire bible. And I think he ate and drank gold, lol.

Now I'm waxing nostalgic... "Nulli, Nulli... wherefore art thou, Nulli?"

In Paradise, I know... whether he likes it or not! He prolly* started complaining as soon as he got there.

* anyone ever hear from the Tater of Doom?

#19 | Posted by Corky at 2025-02-04 04:41 PM | Reply

Ray was industrious, though. He basically re-wrote the entire bible.
#19 | POSTED BY CORKY AT 2025-02-04 04:41 PM | FLAG:

It was ray who preached investing into gold. But he didn't rewrite anything. He simply offered allegorical alternatives to understanding the Bible.

You don't make money off of gold itself. It's simply a shelter from inflation.

#20 | Posted by lfthndthrds at 2025-02-04 04:46 PM | Reply

It may be a useful commodity for electronics and jewelry, for now. But you still can't eat it.

#9 | POSTED BY WHATSLEFT

Maybe? Duh. It's very useful.

Also ...

Gold has no nutritional value but gold is perfectly edible and people do eat gold. The purer the gold is the safer it is to eat.

Gold has value and it will always have value because man lusts after gold. Gold lust U.S. what actually created America.

...

#17 | POSTED BY LFTHNDTHRDS.

So why lie about it?

Anyway ..Thanks for proving my point. Gold is a hedge against inflation. The more fear there is in America's full faith and credit the more people horde gold. The more valuable it becomes.. etc etc ...

Seems that the less the dollar is worth the more the gold is worth.

#21 | Posted by donnerboy at 2025-02-04 05:22 PM | Reply

"Gold lust U.S. what actually created America."

Gold lust is what actually created America.

#22 | Posted by donnerboy at 2025-02-04 05:23 PM | Reply

Gold lust is what actually created America.

Posted by donnerboy at 2025-02-04 05:23 PM | Reply

I thought it was an ancient Sharpie that created America.

#23 | Posted by LauraMohr at 2025-02-04 05:26 PM | Reply | Funny: 1

#21 | POSTED BY DONNERBOY AT 2025-02-04 05:22 PM

Lie about what?

#24 | Posted by lfthndthrds at 2025-02-04 07:18 PM | Reply

Dutch tulips?

#25 | Posted by LampLighter at 2025-02-04 07:23 PM | Reply

Bitcoin is a non-linear ponzi scheme with no rules.
#2 | POSTED BY ANGRYDAD

Its not a "ponzi" scheme, its a "greater fool" scheme. Ponzi schemes rely on centralized control taking in money, and overselling and distributing the new money.

Bitcoin isn't oversold, its hoping someone will pay more for the "asset" than you paid, ie a greater fool.

#26 | Posted by oneironaut at 2025-02-04 07:57 PM | Reply

Dutch tulips?
#25 | POSTED BY LAMPLIGHTER

Tulips aren't Dutch, they're Turkish, which was a contributing factor in the whole Tulip bubble.

#27 | Posted by oneironaut at 2025-02-04 07:59 PM | Reply

Gold has value and it will always have value because man lusts after gold.

Look at DonnerBot, trolling with such nonsense.

#28 | Posted by oneironaut at 2025-02-04 08:01 PM | Reply

Dutch tulips?

Only since the 16th century.

#29 | Posted by REDIAL at 2025-02-04 08:03 PM | Reply

@#29 ... Only since the 16th century. ...

Yup.

My question is ... is the current Bitcoin fad similar to the Dutch Tulip mania of the 17th century?

Tulip mania
en.wikipedia.org

... Tulip mania (Dutch: tulpenmanie) was a period during the Dutch Golden Age when contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels. The major acceleration started in 1634 and then dramatically collapsed in February 1637. It is generally considered to have been the first recorded speculative bubble or asset bubble in history.[2] ...

#30 | Posted by LampLighter at 2025-02-04 08:22 PM | Reply

Looks like Donnerdud got his chart reading skills from Dr. SaltyDog.

#31 | Posted by lfthndthrds at 2025-02-05 06:57 AM | Reply

It's been theorized that Bitcoin is going to 0 for at least 14 years now. Instead it's gone from valued at less than a dollar to valued at over $100,000 while the naysayers keep naysaying.

#32 | Posted by THEBULL at 2025-02-05 04:24 PM | Reply