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"Bitcoin Will Be Worth $0 in 10 Years"... Nobel Laureate's Dire Warning
- Nobel laureate Professor Eugene Fama emphasized the possibility of Bitcoin's value dropping to $0 within 10 years, identifying the 51% attack as a major risk.
- Professor Fama analyzed that strong regulations by governments and central banks could drastically reduce Bitcoin's value.
- Bitcoin prices have recently shown a sharp decline, falling below the $100,000 mark, indicating that investors need to be cautious.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
Professor Fama: "Probability of Bitcoin Being Worth $0 is Close to 100%"
Major Risk Identified as '51% Attack'
Bitcoin Falls Below $100,000 on the 2nd (Local Time)
"Bitcoin Will Be Worth $0 in 10 Years"... Nobel Laureate's Dire Warning
Eugene Fama, a Nobel Prize-winning economist and often referred to as the 'father of modern finance', has offered a pessimistic outlook on the future of Bitcoin.
According to crypto-focused media outlets Crypto News and ProMarket on the 2nd (local time), Professor Fama stated on the podcast 'Capitalisn't' on the 30th of last month that Bitcoin cannot fulfill the role of currency, asserting that "the probability of Bitcoin's value dropping to $0 within 10 years is almost 100%."
He noted that Bitcoin "fails to maintain stable real value and has highly variable real value," adding that "due to its limited supply, its price is entirely determined by demand, leading to extreme volatility, making it unsuitable as a medium of exchange."
In particular, he strongly criticized, saying, "I hope Bitcoin collapses. Otherwise, we will have to redefine monetary theory from scratch." However, he acknowledged that his prediction might not be correct, admitting that "there is a possibility of being wrong."
Professor Fama identified the '51% attack' as a major risk for Bitcoin. If a certain group controls more than 51% of the network, they can manipulate transactions or control the network, posing a threat to security.
He also analyzed that if governments and central banks around the world strongly regulate cryptocurrencies, the value of Bitcoin could plummet.
He pointed out that "unlike gold, Bitcoin has no practical use." Gold is used in jewelry, electronic components, and industrial applications, but Bitcoin lacks such tangible uses.
On the other hand, he expressed a more positive view on stablecoins. In particular, he mentioned that "dollar-based stablecoins have the potential to be recognized for their value," stating that "since the dollar has stable value, if utilized on the blockchain, there is potential."
Meanwhile, as the tariff war reignites from the U.S., Bitcoin prices are showing a sharp decline. As of 2 PM on the 2nd (Eastern Time), Bitcoin was trading at $97,759, down 5.0% from 24 hours ago, falling below the $100,000 mark.
Since recording the $105,000 range on the 31st of last month, it has continued to decline for three consecutive days. Particularly, after barely maintaining the early $100,000 range on the night of the 1st, it fell sharply, losing the $100,000 level.
With Professor Fama's outlook and Bitcoin's sharp decline coinciding, debates about Bitcoin's future are expected to intensify in the market.
Crypto-focused media outlet CoinDesk analyzed that "the mass deportation policy of illegal immigrants in the U.S., along with the resumed trade war, could exacerbate inflation, making it difficult for the Federal Reserve (Fed) to cut interest rates."
Yoo Ji-hee, Hankyung.com Reporter keephee@hankyung.com

Korea Economic Daily

hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.PiCK News
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