There was always doubt about Bitcoin. Nobel laureate Eugene Fama, known as the father of modern finance, predicts a few days ago, that Bitcoin will be absolutely worthless in the next five years. His comments have created a global stir.
But even then Bitcoin's new records are not closed. Is Trump's powering to be behind this rise of Bitcoin?
In November 2021, Bitcoin first crossed the $ 1 million milestone. It is believed that Donald Trump's crypto -friendly policy arose new hope in the market. Then on January 25, Donald Trump reached a maximum of $ 1,220 before the US president was sworn in in the second term.
Showing a positive attitude towards crypto currency, Trump has already supported the stable crypto coins (stable coins) against the digital dollar and also proposed to form a strategic Bitcoin Reserve.
Meanwhile, on Thursday (February 8, 2012), Bitcoin was priced at $ 5,900 at 5am (GMT).
Why is Fama talking about Bitcoin collapse?
When Crypto supporters are expecting Bitcoin prices to touch the gagan, Fama has given the opposite. This pioneer of the modern economy thinks that the main flaws of Bitcoin will be the cause of its fall. These include excessive instability – it is not reliable for the transaction. There is no central control – it is not under the control of any government or organization like the current currency. Only dependent on demand. If that demand decreases, the price will fall to zero. Not a real currency – if it is not widely used as a means of transaction, is it a true currency?
Is Bitcoin Digital Gold?
Opposing Fama's statement, supporters say that Bitcoin is not just a coin, it is now considered 'digital gold'.
The reason for saying so is the limited supply of the coin. At present, the total supply of Bitcoin in the crypto market will not be more than 20 million. This will become scarce, which is one of the reasons for raising the price.
Bitcoin does not have the opportunity to increase the number of Bitcoin against the exploitation -free of inflation. As a result, the central bank or the government will not be able to underestimate it through extreme currency. It can become an alternative investment means during the economic crisis.
However, critics believe that the price of Bitcoin depends on the policy -making decisions of different countries and the market attitude. As a result, it is not completely free from the influence of the free market.
What if Bitcoin could be destroyed?
One of the biggest threats to survive Bitcoin includes global sanctions. If worldwide governments completely ban Bitcoin transactions, its market may collapse.
Then there is a technical error. If there is a serious problem in Bitcoin technology, it can be destroyed. Then there is the emergence of alternative currency of advanced technology. If a crypto currency is more effective and reliable than Bitcoin, then investors can move away from Bitcoin.
Bitcoin's 'rare' is true or myth?
Some economists believe that the limited supply of Bitcoin is actually meaningless. Economist Peter Shif claims that anyone can create a new coin at a low cost, which will also be specific. As a result, digital currency is suspected of 'rareness'.
The debate over Bitcoin's future does not stop. Analysts like Fama and Shiff think it will be destroyed. On the other hand, supporters see it as a revolution in the economy.
One thing is sure, Bitcoin and other crypto coins are still on the way to evolution. Its future depends on acceptance, institutional investment, control and market situation.
