Nobel laureate Eugene Fama has issued a stark warning about the future of Bitcoin price, predicting that the cryptocurrency could become worthless within the next decade. Known as the ‘Father of Modern Finance’, Fama’s critique centers on Bitcoin’s inherent instability and its lack of backing by a central authority.
In a recent discussion on the Capitalisn’t podcast, Fama highlighted the volatile nature of Bitcoin’s value, emphasizing that such fluctuations undermine its viability as a medium of exchange. He stated, “Cryptocurrencies are such a puzzle because they violate all the rules of a medium of exchange. They don’t have a stable real value… That kind of medium of exchange is not supposed to survive.”
Fama’s concerns are rooted in Bitcoin’s decentralized nature. Unlike fiat currencies, which are supported by governmental institutions, Bitcoin operates without a central authority. This absence of backing means that its value is driven solely by market demand. Fama warns that if demand diminishes, Bitcoin’s value could plummet to zero. He elaborated, “The problem with all the cryptos is, in order to create some trust in the system, you basically bound the supply, and once you bound the supply, the price is driven entirely by demand.”
The economist also addressed the fixed supply of Bitcoin, noting that while the capped supply is intended to instill trust, it also makes the cryptocurrency’s value highly susceptible to shifts in demand. When questioned about the likelihood of Bitcoin’s value dropping to zero, Fama responded, “I would say it’s close to one,” indicating a strong possibility of such an outcome. However, he acknowledged the unpredictability of the market, adding that “the distribution has long tails,” suggesting that while a collapse is possible, its timing and manner are uncertain.
Fama’s skepticism is shared by other esteemed economists. In 2017, Nobel Prize-winning economist Joseph Stiglitz argued that Bitcoin should be “outlawed” due to its lack of oversight and potential for circumvention. He asserted that Bitcoin “doesn’t serve any socially useful function.”
Similarly, in 2018, Nobel laureate Robert Shiller expressed doubts about Bitcoin’s longevity, stating that while it might “totally collapse and be forgotten,” it could also “linger on for a good long time.” He compared the cryptocurrency to the 17th-century tulip mania in Holland, suggesting that its value is primarily driven by speculative enthusiasm.
Despite these warnings, Bitcoin has experienced significant growth in recent years. In January 2025, Bitcoin price reached an all-time high of $109,114.88. This surge was partly attributed to increased adoption, including notable events such as U.S. President Donald Trump becoming the first sitting president to conduct a purchase using cryptocurrency. Additionally, both President Trump and First Lady Melania Trump have launched their own meme coins, further fueling public interest.
However, Fama cautions that such developments do not necessarily indicate long-term stability. He emphasizes that Bitcoin’s lack of intrinsic value and its dependence on sustained demand make it a precarious investment. Reflecting on his own theories, Fama remarked, “I’m hoping it will bust, because if it doesn’t, you have to start all over with monetary theory.”
As the cryptocurrency market continues to evolve, investors are advised to approach with caution. The insights of financial experts like Fama underscore the importance of thorough research and a clear understanding of the inherent risks associated with digital currencies.
While Bitcoin’s recent milestones have captured public attention, leading economists warn of its potential downfall. The combination of volatility, lack of central backing, and speculative demand suggests that Bitcoin price future remains uncertain. As Fama and his peers suggest, the possibility of Bitcoin becoming worthless within the next decade cannot be dismissed.
Do you have any story or press releases you want to share? Send tips to editor@envestreetfinancial.com
Follow us on Twitter, Facebook, or LinkedIn to ensure you don’t miss out on any