Scholar and risk management specialist Nassim Nicholas Taleb, the author of best-selling books like “Black Swan” and “Antifragile,” abruptly changed his mind on Bitcoin precisely three years ago and became a staunch critic.
It took place a few months before to Bitcoin reaching its first all-time high of $63,000 in 2021.
Taleb’s arguments against Bitcoin
Taleb said in a tweet on February 12, 2021, that he has started selling his Bitcoin holdings. The professor said, “A currency is never supposed to be more volatile than what you buy and sell with it,” as an explanation for why he started doing that.
Additionally, as Taleb said, “you can’t price goods in BTC,” meaning that Bitcoin was a “failure” in that regard.
https://x.com/nntaleb/status/1360276917992230919?s=20
The well-known author of “Black Swan,” Taleb, also started condemning Bitcoin for its lack of transparency and its potential for use in money laundering and tax evasion. Taleb stated that these are the primary characteristics that determine a cryptocurrency’s attractiveness. He claims that “BTC is more tractable than cash” at that point. It is possible to become even gold unmanageable – “Remelting a gold coin can make it anonymous.” A spoon may be reworked, but Bitcoin cannot.
https://x.com/nntaleb/status/1360458636921823235?s=20
Furthermore, Taleb made the point that Bitcoin volatility does not go down with time or even when the price starts to rise.
“Bitcoin failed as hedge against banks”
Taleb said that Bitcoin has failed in this situation as well when asked if it had succeeded as “an asset and a hedge against central bank irresponsibility.”
When the US had a financial crisis at the beginning of 2023, Silvergate, Silicon Valley Bank, Signature Bank, and First Republic Bank failed; the US government had to bail out nearly all of them.
The world’s leading cryptocurrency increased in value from $23,000 to over $30,000 throughout these occurrences.
Furthermore, Taleb has never addressed the acceptance of Bitcoin ETFs on the spot. Numerous market analysts, such as angel investor Anthony Pompliano, claim that “Wall Street loves Bitcoin” at the moment.
This began a month ago with the approval of the ETFs stated above. Of the 5,500 ETFs introduced in the last 30 years, two have witnessed inflows totaling $3 billion in the first month of trade, said Pompliano.
