Table of Contents:
Capitalisn’t: Why This Nobel Economist Thinks Bitcoin Is Going to Zero
The University of Chicago Booth School of Business recently featured an episode with Eugene F. Fama, a Nobel laureate known as the "Father of Modern Finance," who predicts that Bitcoin will be worthless within ten years. Despite its market capitalization reaching $2 trillion in December 2024, surpassing giants like Tesla and Meta, Fama remains skeptical about Bitcoin's future value. He argues that cryptocurrencies violate fundamental principles of a medium of exchange due to their volatile nature and lack of intrinsic value.
Bitcoin Rallies Above $106K but Faces Challenges for New Highs
Cointelegraph reports on Bitcoin’s strong start to 2025, noting a price increase by 13.5% in January alone. However, despite favorable conditions such as increased institutional interest from entities like the Czech National Bank considering allocating reserves into Bitcoin, three key factors are hindering further growth beyond $105,000. These include global economic uncertainties leading investors towards safer assets and regulatory hurdles preventing seamless integration with traditional financial systems.
ECB's Lagarde Rejects Czech Proposal for Bitcoin Reserves
According to Reuters, European Central Bank President Christine Lagarde has dismissed proposals from the Czech Republic regarding incorporating bitcoin into national reserves. The proposal suggested using up to 5% of the country's €140 billion reserves for this purpose; however, it faced immediate pushback from ECB officials concerned about volatility risks associated with cryptocurrency investments at central banks across Europe.
Czech National Bank To Assess Bitcoin as Part of Reserve Strategy
A report by Bitcoin Magazine highlights how the Czech National Bank (CNB) is exploring new asset classes including bitcoin amidst ongoing diversification efforts over recent years aimed at enhancing returns through innovative approaches toward reserve management strategies globally among other western nations potentially following suit if successful outcomes arise post-analysis completion later down the line. According to Governor Aleš Michl, statements made during a Financial Times interview earlier this week revealed intentions to allocate a portion of existing holdings in digital currency cautiously, optimistic of potential disruptions that may occur, setting a precedent that others might emulate similarly in future.
Sources:
- Capitalisn’t: Why This Nobel Economist Thinks Bitcoin Is Going to Zero
- Bitcoin rallies above $106K but 3 key actions must happen for new all-time highs
- ECB's Lagarde slaps down Czech proposal for bitcoin reserves
- Czech National Bank To Assess Bitcoin as Part of Reserve Strategy
- ECB's Lagarde Is Confident EU Central Banks Will Shun Bitcoin Reserves
- Grayscale Investments Launches Bitcoin Miners ETF
