Nobel Economist Labels Bitcoin “A Financial Black Hole”

Appearing on the Capitalis’t podcast, Eugene Fama delivered his verdict: Bitcoin is doomed. While the crypto world has heard plenty of these eulogies before, Bitcoin continues to defy the odds.

Fama ridiculed the idea of a blockchain-based financial system, likening it to boiling soup over a fire made from plastic bottles—expensive, inefficient, and environmentally reckless. He sees Bitcoin as a wild card in monetary theory, unpredictable and undeserving of attention. And the idea that it’s “digital gold”? He’s not buying it. 

“Cryptocurrencies are such a puzzle because they violate all the rules of a medium of exchange,” Fama said. “They don't have a stable real value. They have highly variable real value. That kind of a medium of exchange is not supposed to survive,” he concluded.

A Nobel-winning economist and the father of modern finance says Bitcoin is on borrowed time—so should we believe him?

Perhaps. But he’s far from alone in his skepticism.

Warren Buffett, for example, once dismissed Bitcoin as “rat poison squared.” Ironically, his own investment empire now has indirect exposure to it. If Bitcoin truly is a dying asset, why do its biggest critics keep investing?

Jamie Dimon swears that Bitcoin is worthless, yet JPMorgan Chase keeps rolling out more crypto services for its high-net-worth clients. Funny how that works.

Ken Griffin once compared Bitcoin to the Dutch tulip mania, but let’s be honest—those tulips are long dead, while Bitcoin is still here.

Even the ECB tried to bury Bitcoin last year, claiming no one outside the Darknet cares about it. Now? The EU is looking to make BTC part of its strategic reserves.

Luckily, Bitcoin has some staunch defenders who believe it’s the ultimate inflation shield. With just 21 million coins ever to exist, it’s a stark contrast to the endless money-printing of central banks. No politician can press a button and create more BTC out of thin air.

And let’s not forget—blockchain is more than just Bitcoin. It’s about security, transparency, and cutting out middlemen. Decentralization isn’t just a buzzword; it’s a real shot at financial independence.

Of course, Bitcoin isn’t perfect. It’s not as fast as your credit card, and transaction fees can be painful. But with solutions like the Lightning Network in play, those issues are becoming less of a headache every day.

The Bitcoin debate remains unsettled—a bubble on the verge of popping or the dawn of a decentralized future? No one knows for sure.

Yet, one fact stands: Bitcoin is just over 15 years old. Regardless of its ultimate fate, it has already challenged the financial status quo, proving that money can exist beyond governments and banks.