A Nobel Prize-winning economist has issued a dire warning about Bitcoin’s future, claiming that the cryptocurrency could become completely worthless within the next decade.
Eugene Fama, known as the “Father of Modern Finance,” argues that Bitcoin lacks real value, remains highly unstable, and struggles to integrate into mainstream banking. He believes its fluctuating demand and absence of government backing will ultimately lead to its downfall.
Fama compared Bitcoin to the NFT market crash of 2021, suggesting that if demand vanishes, Bitcoin’s price will follow. Speaking on the Capitalisn’t podcast, he criticized crypto’s role as a medium of exchange, highlighting its volatile nature.
“Cryptocurrencies violate all the rules of a medium of exchange,” Fama stated. “They don’t have a stable real value. A currency with high volatility isn’t meant to survive.”
Bitcoin’s supply is fixed, meaning its price is driven solely by demand, which, according to Fama, makes it an unsuitable long-term currency.
When asked if Bitcoin could eventually drop to zero, Fama replied, “I would say it’s close to one,” but admitted that predicting the exact timeline of a collapse is difficult.
Despite Bitcoin reaching an all-time high of $109,114.88 in January 2025, recent market turbulence and US economic policies have caused price fluctuations, reinforcing concerns about its long-term viability.
Fama ultimately hopes Bitcoin will collapse, as it would validate his economic theories on efficient capital markets. However, if Bitcoin survives, he suggests economists may need to rethink traditional monetary theories entirely.
