American economist Nassim Taleb, the author of the theory of “black swans”, joined the critics of bitcoin and called it a “pyramid”.
Squawk Box on CNBC Taleb stressedthat the first cryptocurrency should not be considered as a hedging asset. Perhaps in some ways he is right – with the growth of capitalization and the arrival of large players, bitcoin has become increasingly correlated with traditional financial markets. For example, the latest drop in the BTC rate is associated with the actions of the American government.
“There are no factors to hedge inflation risks with Bitcoin. If you want to hedge – buy a piece of land and grow olives on it. Even if the currency collapses, you are left with olive oil. It doesn’t work with bitcoin, ”Taleb said.
But he did not stop there either, calling bitcoin a pyramid. According to him, investors themselves create demand for the first cryptocurrency and attract new “victims” of the pyramid. The more interest in Bitcoin, the higher its rate and the more early buyers earn. However, isn’t that how any markets work?
“Today you have bitcoin, tomorrow something else, they come and go. But they never fulfill their obligations, ”the cryptocurrency skeptic believes.
Note that earlier Taleb was more positive about cryptocurrencies. He called digital assets more attractive than fiat currencies, and also encouraged Lebanese to use Bitcoin.
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