On the Capitalisnnt podcast on January 30, 2025, Nobel Prize-winning economist Eugene Fama declared that Bitcoin violates all the rules of a medium of exchange. " Bitcoin has no real stable value. You know, they have high volatile real value, which is not suitable for a payment method" - Fama said.
The father of modern finance shows that if a type of money cannot maintain stable value, it cannot last long.
When asked about the likelihood of Bitcoin returning to zero within 10 years, Fama replied: The probability is almost 1.
Also in the interview, Fama expressed his disagreement with the term "economic bubble" because the bubble needs to have a predictable ending. But nothing on the market is predictable, he argued.
Although he does not believe in the concept of an economic bubble, Fama still believes that Bitcoin will soon "break".
"I hope it will explode because otherwise, we would have to rewrite the entire monetary theory, which is probably wiped out," he said.
"Everything we think we know about currency theory says that cryptocurrencies should not exist," Fama added.
Fama, who won the Nobel Prize in Economics in 2013, also emphasized that - unlike Bitcoin - gold is more beneficial because gold has practical value due to many applications in industry, jewelry and national reserves. According to him, the role of the government in the cryptocurrency market could accelerate the devaluation of Bitcoin.
Not only facing pessimistic forecasts from the economics, Bitcoin and the cryptocurrency market have just experienced the biggest crash in history in one day.
According to Coinglass, the service that tracks transactions on major cryptocurrency exchanges, the global cryptocurrency market had to endure a record decrease in one day on the night of February 3. The total volume of trading orders that were forced to close due to insufficient deposits (clearing the balance) exceeded 2.24 billion USD in the past 24 hours.
More than 730,000 traders have faced liquidation. Nearly 37% of all liquidations occurred on the Binance cryptocurrency exchange due to the large number of users on the exchange. Other cryptocurrency exchanges are also experiencing liquidation, which is believed to be OKX, Bybit, Gate.IO and HTX.
Bitcoin prices fell sharply by 6.5%, reaching a low of $92,500 before recovering to trade at $95,484.
In addition to major liquidations, some of the most traded cryptocurrencies have fallen by double digits. Ether suffered the worst impact, plummeting about 20% to $2,520. The second largest cryptocurrency by market capitalization after Bitcoin has increased to 2,611 USD as of 11:24 GMT. Cardano and Ripple fell more than 19,9% and 16%, respectively.
According to CoinGecko, the total cryptocurrency market capitalization has decreased by nearly 9% to $3.24 trillion. Total digital currency trading volume in the past 24 hours reached 401 billion USD.
The reason is said to be due to the new tariff policies of US President Donald Trump, causing a wave of sell-offs in the risky asset market, including cryptocurrency.
In Vietnam, representatives of the State Bank have repeatedly sent out the message: Bitcoin and other similar virtual currencies are not legal currencies and payment methods in Vietnam. The issuance, supply, and use of Bitcoin and other similar cryptocurrencies as a means of payment is an act that is not in accordance with current law.
