Bitcoin will eventually be zero, economists predict: here when

Eugen Fama, the famous “father of modern finance”, predicts bitcoin will be useless in a decade.

Why? Cryptocurrency “violate all the rules of a medium of the exchange,” Fama said on the January 30 episode No capitalis“They do not have a stable real value. You know, they have highly variable real value. That kind of medium of exchange should not be alive. ,

Faama, who Reprehensible The concept of skilled markets in the 1960s, was not really guarantee that bitcoin would be useless. Instead, he agreed when the podcast host, Finance Professor Luigi Zingles asked what was the possibility, “Within 10 years, the price of bitcoin would be zero?”

“I would say it’s close to one,” Fama replied.

‘Is this a bubble?’

The interview began with the rejection of the term “economic bubble” with Fama as the bubble needs an forecast end. But nothing is estimated in the market, he argues.

Journalist Bethani McCalin, who caresses the show with Zingless, asked Fama if Bitcoin was a bubble, Fama indicated that he hoped that it would burst.

“I am hoping that it will bust, because if it doesn’t, we have to start with monetary principle – it has gone,” said Fama. “It can be already gone.”

“We thought we know about monetary theory [cryptocurrency] Should not be alive, ”says Fama.

Crypto violates all rules of a medium of exchange because they do not have a stable value and people will not use it as currency, they explained. This feeling, approximately, Angry Some in the Crypto community.

“What about stablecoins?”

McCalin raised this question to Fama, who said “can work” using the US dollar on the blockchain, “because in the dollar” stable, real value “.

Another major threat to the Bitcoin given by Fama is 51% attack. Although such an attack must have been expensive, Fama says that every transaction system facing “verification is the problem and a problem that is implementing the rules.”

Fama, who was awarded the Nobel Prize in Economics in 2013, also insists that – unlike bitcoin – gold is more favorable because it has many uses of uses. And the government’s role in the Crypto market can increase the loss of the price of bitcoin.

It is worth noting that FAMA examined the box of main surface-level dangers for decentralized digital wealth, but that no predictions of them were expressed with confidence completely.

“To accept that he may be wrong … he is ready to adapt to his universe at the age of 86,” to accept it. “I think it’s really remarkable.”

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