The world’s first and largest cryptocurrency, Bitcoin [BTC] has garnered several fans across many industries from all around the world. Just as the price of the king coin shot up, the craze with regard to it also witnessed a massive surge. BTC hasn’t lost a lot of fans, however, prominent author, Nassim Taleb went on to recently announce that he no more supported the king coin.
Appearing in a recent interview with CNBC’s Squawk Box, the Black Swan author revealed the reason behind his sudden aversion towards BTC.
Bitcoin Has No Connection With Inflation, Taleb Asserts
Taleb made rounds in the crypto community after he suggested that the world’s largest cryptocurrency could have been an insurance policy. However, during February 2021 Taleb decided to dump all of his BTC, citing volatility as a major reason.
More recently, in the Squawk Box interview, Taleb pointed out that the king coin entailed the “characteristics of an open Ponzi”. While several have time and again suggested that Bitcoin, similar to gold has been a hedge against inflation, the Black Swan author suggested otherwise. He believed that there was no “connection between inflation and Bitcoin.”
Elaborating on the same, he added,
“If you want a hedge against inflation, buy a piece of land, grow—I don’t know—olives on it. You’ll have olive oil if the price collapses. With Bitcoin, there’s no connection.”
Bitcoin [BTC], over the last couple of days, witnessed a massive downfall. The king coin plummeted from a high of $64K all the way down to $48K. During press time, BTC was trading for $49,704. The king coin once again proved to be extremely volatile.
Furthermore, Taleb asserted,
“These gimmicks, of course, you have Bitcoin today, you may have another one tomorrow they come and go, and there’s no systematic link between them and the claims they make.”