A Nobel Prize winner just ripped into bitcoin and said it 'is likely to go to zero'

Eugene FamaEugene Fama

Bitcoin has been ripping higher recently, and some market participants say the digital currency is finally making a rebound with investors after a sustained fall.

The advice from one Nobel Prize winner: not so fast.

Professor Eugene Fama, who won the 2013 Nobel Prize for Economics, thinks the value of bitcoin “is likely to go to zero,” at some point, according to an interview posted on CoinTelegraph.

Bitcoin prices are hovering around the $US400 mark right now after making a big run-up in late October and early November.  

“People won’t use it because basically it’s very difficult to know how much you need to settle. It is quite variable, they won’t want to hold it as just a way of settling payments, they will try to get rid of it quickly, as they do; and that’s not good for the survival of that kind of a unit of account,” he said in his interview.

“As if it doesn’t have a stable value it’s probably not going to survive as a unit of account. What that means is that it’s value is likely to go to zero at some point.”

Fama goes on to say bitcoin does not represent a ‘store of value,’ like gold does for investors. 

“I guess that for a drug dealer that has a lot more value,” he said. 

There’s a SoundCloud embed posted below, for audio users, or readers can head to CoinTelegraph to read a full version of what Fama had to say.  

 

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