16 July 2021

CNBC: “‘Black Swan’ author Nassim Taleb says bitcoin is worth zero”

The author of “The Black Swan” said in a recent paper that the largest cryptocurrency by market cap has failed to satisfy the notions of it as a currency without government, as a hedge against inflation and as a safe haven investment.

Taleb noted that in March 2020 bitcoin dropped further than the stock market and recovered with it upon the massive injection of liquidity. That’s sufficient evidence that it cannot remotely be used as a tail hedge against systemic risk, he said.

He said bitcoin tends to respond to liquidity and that it’s unclear what would happen if the internet experienced even a regional outage, particularly if it took place during a financial collapse.

People also conflate the success of bitcoin as a digital currency with the success of bitcoin as a speculative investment. To be a currency would require it to have some stability and usability, Taleb said.

Tanaya Macheel

You don’t say? 😏

The creator of Dogecoin had even harsher words to share on Twitter – harsh, but completely justified:

Post a Comment