Nobel Prize -winning economist Eugene Fama made statements about the future of Bitcoin. The economist claims that BTC will fail in the long run. According to him, Bitcoin has no fundamental value, as a means of change, weak and cannot integrate into the traditional financial system. However, history has proven Bitcoin’s durability and rise.
Why does Bitcoin’s future look dark?
One of the fundamental arguments of FAMA is Bitcoin’s high volatility. Stable currencies are widely considered, but Bitcoin’s harsh price fluctuations make it unreliable for daily operations. Businesses avoid accepting an asset as a method of payment in which its value can change rapidly.
Another important point is that Bitcoin lacks state support. While traditional currencies are supported by central banks, Bitcoin is based only on supply and demand. If the demand decreases, the value of Bitcoin may decrease to zero. This is a proof that he will fail in the long run, according to Fama.
Is Bitcoin a value storage tool like gold?
Bitcoin advocates think differently. According to them, Bitcoin’s aim is not to be a traditional currency, but to be a tool of value storing like digital gold. Bitcoin’s total supply is limited to 21 million, which makes it resistant to inflation.
In addition, Bitcoin’s volatility is seen as a natural result of the early adoption process by many experts. Just as gold has experienced periodic fluctuations throughout history, Bitcoin can stabilize in the long run.
What does Bitcoin need for the future and really collapse?
If Bitcoin is going to fail, large -scale destructive events need to be experienced. Factors such as global prohibition, serious security vulnerabilities in the code or the emergence of a superior digital asset may bring the end of Bitcoin. However, Bitcoin has continued to strengthen its existence despite regulatory pressures, market collapse and harsh criticism of the financial world.
Bitcoin’s future may be uncertain, but it is early to accept Fama’s claims completely correctly. Bitcoin’s fate will depend on the adoption rate, regulatory developments and market dynamics. However, history shows that Bitcoin has been strengthened from every crisis so far.
