Ex-Bitcoin and cryptocurrency advocate Nassim Taleb thinks that Bitcoin is nothing and even fails to act as a financial hedge.
Nassim hasn’t had a good image in the Bitcoin market. He once used to celebrate Bitcoin and other cryptocurrencies, but now it seems that the tides have turned, and he is now a very aggressive critic of the crypto world.
Nassim recently published a paper in which he highlighted the many reasons why he thinks that Bitcoin has failed to become anything at all in the financial world.
Bitcoin as Store of Value
Nassim started by talking about Bitcoin becoming the next store of value just like Gold, for which he stated that anyone who claims Bitcoin, which is an innovation, is to become a store of value, has reasoning error and that Gold was forced to become this way, because of fiat currency. Nassim continued by saying that the concept of money fully dependent on a common agreement. Force can be used, relating to fiat or increase in social interactions, but results in a lot of time being wasted on changing the culture of a society, which is something that is extremely difficult. Bitcoin cannot reach the level of Gold in a short time period because for Gold to reach this point. It has taken thousands of years.
Bitcoin as Money
Talking about Bitcoin becoming money, Nassim said that it is very important for any currency to maintain stability in the market so that it can work as a unit of account, which is something Bitcoin cannot do because of the fluctuating volatile nature of the crypto. Carrying on, He said that a fixed price is currently impossible to setup, because Bitcoin doesn’t have a worldwide decision on what value it is supposed to carry. If this volatility isn’t solved, then Bitcoin will eventually fail.
Fallacies and Bubbles
Nassim also said that Arguments from Theoretical analysts are fallacies and have no meaning to them. Nassim pushed forward by saying that it is wrong to think of Bitcoin as a product of libertarian design and that Bitcoin is some sort of a safe area. Similar to other bubble items, Bitcoin changes with liquidity instead of reducing volatility. Nassim ended by saying that it is incorrect to assume that Bitcoin is protecting traders against dangerous regimes and that there is a huge problem regarding fallacy being spread by Agencies.