Nobel economists are pessimistic about Bitcoin! They assert that it will be zero within 10 years and it's worse than air as digital gold.

Since the US President Donald Trump announced the establishment of BTC strategic reserves, Bitcoin has soared above the $100K mark, and countries around the world have followed suit. However, Eugene F. Fama, a renowned Nobel laureate in economics and considered the "father of modern finance," bluntly stated on a podcast that assets like BTC will eventually go to zero, even worse than air.

The high computational cost of batch blockchain financial system violates the theory of currency.

Fama believes that the entire financial system cannot be completely built on blockchain, because it would consume too much computing power, and from the perspective of monetary theory, cryptocurrencies simply should not survive in the world.

"Cryptocurrency is an unsolvable puzzle because it violates all the rules of a medium of exchange," he explained. Traditional currency should have a stable intrinsic value, but the value of Bitcoin (BTC) is extremely unstable, making it impossible for such a medium of exchange to survive in the market in the long term.

Fama is going crazy with BTC, even the air is no match. What a talk about digital gold.

Many BTC supporters generally believe that, although cryptocurrencies like this are not suitable for everyday payments, they can serve as 'digital gold' because of the total limit of 21 million, and thus become a hedge asset against inflation.

However, Fama completely disagrees with this statement, believing that BTC can only be called digital gold when it has practical use. 'If it has no use, it is even worse than paper, no, I should say it is even worse than air,' he ranted.

Bitcoin's market value has surpassed 2 trillion US dollars, but it may be just a flash in the pan.

Data shows that BTC has now become the seventh largest asset in the world, with a total market value of nearly $2 trillion. However, Fama still holds a pessimistic view on this. He believes that this is a bubble, but cannot predict when it will burst.

"But I hope it breaks, otherwise we will have to rebuild the theory of currency." He even joked that he is already 86 years old and may not be able to witness the future of BTC in 10 years, but still insists that BTC is a flash in the pan.

BTC has risen to become the world's seventh largest asset. BTC will seek government assistance after the collapse, do not involve traditional finance.

Fama also warned that if the crypto market crashes, many crypto players will absolutely turn to the government for help in an attempt to get a bailout. Therefore, he advocated that the cryptocurrency market should be kept at a distance from the traditional financial system to avoid the financial system being affected by the collapse of cryptocurrencies.

However, with the listing of spot ETFs such as BTC (BTC) and Ethereum (ETH) one after another, the relationship between Wall Street and the crypto industry is getting closer and closer, coupled with the relaxation of banking regulations, the link between financial markets and cryptocurrencies may not be easily cut.

( Reserve BTC to repay US debt, think too much, according to think tank experts )

This article Nobel laureate economist pessimistic about BTC! Asserts zero in 10 years and bursts: digital gold that is worse than air.