Author of the seminal book “Black Swan,” Nassim Nicholas Taleb, has used social media to make predictions about the demise of Bitcoin, the first and biggest cryptocurrency in the world. Taleb predicted on Friday that “inexorable decay, not a crash, will eventually kill Bitcoin.” He said, “Fads are more threatened by indifference than by disgust.”
These remarks come at a time when the market is volatile and Bitcoin and other cryptocurrencies are subject to varied degrees of regulatory scrutiny. Although Bitcoin now dominates the market, Taleb believes that it won’t tumble as quickly as some would anticipate.
The trade volume for Bitcoin has been “slowly disappearing,” according to Taleb, who noted a decrease of more than 85% from its high earlier this month.
He forewarned that as market manipulations get simpler when volume declines, “this is how Open Ponzis implode.” While Taleb’s ideas are undoubtedly thought-provoking, it’s important to remember that market manipulation and declining interest are issues that many assets in the financial markets face rather than just Bitcoin.
Taleb has long been an opponent of both Bitcoin and the Federal Reserve. In one of his earlier tweets, he said that the notion that Bitcoin is a superior alternative to the Federal Reserve is false, even going so far as to suggest that “Fed Reserve is bad; Bitcoin is worse.” Additionally, he has cast doubt on Bitcoin’s ability to serve as a hedge against inflation and funding problems by pointing to occasions in which its price fell when it was meant to serve as a safety net.
Taleb is known for being able to recognise risk and uncertainty, thus his cautious opinions on Bitcoin provide a crucial contrast to the positive ideas that are frequently expressed in the cryptocurrency world. It’s unclear if Bitcoin will experience “inexorable decay” as Taleb predicts, or if it will continue to develop and respond to market challenges.
