American writer, statistician and former trader and risk manager Nassim Nicholas Taleb, author of the economic bestsellers Black Swan (2007) and Risking Our Own Skin. The Hidden Asymmetry of Everyday Life ”(2018), stated that Bitcoin had failed. He believes that the largest cryptocurrency by market capitalization failed to satisfy the perception of it as a currency without government and as a safe investment haven: “Few assets in financial history have been more fragile than Bitcoin.”
In his latest article, Taleb, who has previously spoken more favorably about bitcoin, stated that bitcoin has “zero value” in part because it requires continued interest to sustain it. At the same time, gold and other precious metals are generally maintenance-free and do not degrade over time.
Taleb noted that Bitcoin tends to react to liquidity and it is unclear what would happen if even a regional blackout occurs on the Internet, especially if it happens during a financial crash. Taleb noted that Bitcoin has maintained extremely high volatility, ranging from 60% to 100%, “throughout its life.”
Indeed, it is advisable to have at least one real currency without government. But the new currency should be more attractive as a store of value by tracking a weighted basket of goods and services with minimal error.
Nassim Nicholas Taleb
As we previously reported, the creator of Dogecoin compares the cryptocurrency industry to a scam controlled by a powerful cartel of rich people for their own benefit.