Nobel laureate in economics blasts BTC: zero within 10 years, avoid TradFi to avoid being dragged down

Eugene F. Fama, acclaimed as the 'father of modern finance', recently fiercely criticized BTC on the Capitalisn't Podcast, stating that it is 'worthless, with no practical use' and predicting that the BTC bubble will burst within 10 years. (Previous context: BTC, housing market golden cross, crypto world KOL buys in Taipei, TSMC engineer sells, construction starts at a 5-year low) (Background information: Decreasing attractiveness of BTC? JPMorgan: Over 70% of traders have no intention of buying or selling virtual currency) BTC is often the subject of criticism by TradFi professionals, with common doubts including high volatility, lack of intrinsic value, and the fact that it is rarely used for everyday payments as a currency. Recently, Nobel laureate in economics and acclaimed as the 'father of modern finance' Eugene F. Fama made sharp criticisms of BTC on the Capitalisn't Podcast. Eugene even stated that cryptocurrency itself is a mystery because it violates the basic principles as a medium of exchange: 'It lacks stable intrinsic value and has drastic price fluctuations, making such a currency unable to exist long-term.' Regarding the claim that BTC is 'digital gold', Eugene also disagrees. He emphasizes: 'Only assets with practical use can be considered 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 states that according to existing currency theories, cryptocurrency should not have survived until now: 'I hope BTC collapses because if it doesn't, it means we need to overturn existing currency theories and start over. Perhaps the current theories no longer apply, but in any case, we must rethink.' Predicting BTC to go to zero within 10 years, Eugene predicts that the rise of cryptocurrency has a predictable outcome because 'trying to build the entire financial system on a blockchain is impractical and requires massive computing resources.' As for when the bubble will burst, he half-jokingly says: '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 adds that once the cryptocurrency industry collapses, many companies may ultimately turn to the government for help and seek rescue funds. He then argues that cryptocurrency should draw a clear line with the TradFi system to avoid dragging down the entire economy in case of industry collapse and 'clean up the mess.' However, with the listing of BTC and Ether spot ETFs, the accounting standard SAB121, which prevented banks from custodializing encrypted assets, being officially abolished by the SEC, and the FDIC planning to modify and remove discriminatory policies on cryptocurrency, as well as many initiatives to put TradFi assets on the blockchain and the proven effectiveness of stablecoin liquidity mechanisms, these developments indicate that the cryptocurrency industry is not in opposition to TradFi, but rather has the opportunity to prosper and complement each other. Related reports: Arthur Hayes warns: BTC reserves 'may become political weapons' in the event of a Democratic victory or close all positions and discard Depth: Will the US dollar really collapse? Should the US establish BTC reserves? Is the altcoin season over as early as 2024? Analyst: BTC dominance needs to reach 71% to stage a comeback. <Nobel laureate in economics blasts BTC: Zero within 10 years, avoid TradFi to avoid being dragged down> This article was first published on BlockTempo, the most influential blockchain news media in the crypto world.