An options trader turned economic philosopher is bashing the digital currency.
The author of the book "The Black Swan" called the speculative bubble that is now set to form in the digital currency "a contagious disease built on bringing in "suckers"."
Chances are that his prediction will come true, given that the price of the digital currency is expected to reach historic lows.
The author was a believer before last summer. The author of the foreword to "The Bitcoin Standard" is a fellow Lebanon man. The authors of the book advocated the use of the coin as a way out of financial crises.
After a change of heart, Taleb has reversed his stance on the virtual currency. He self-published a "black paper" in which he explained why he no longer bought into the hype of the digital currency and why he now considers it worthless and dangerous.
The writer hasn't backed down, calling the currency itself "an awkward, clunky, and already obsolete product of low interest rates."
The idea of cryptocurrencies being an insurance policy against governments controlling financial markets has failed, according to a paper by Nassim Taleb.
It is desirable to have at least one real currency without a government according to the paper. The new currency needs to be more appealing as a store of value by tracking a weighted basket of goods and services with minimum error.
According to the author, people confuse the speculative worth of the currency with its real value.
He wrote in the paper that the asset was the most fragile in financial history.
The 17th century Dutch tulip bubble ended in disaster, but that's not the only thing that Taleb has compared to a less-attractive iteration of it.
While he is not the first to change his mind, Taleb provides explanations for his evolving opinions.
Even though you disagree, the rigor of the world of cryptocurrencies is pretty refreshing.
The author of 'Black Swan' warns of a speculative bubble in bitcoin.
More support is provided by the fact that the major cript country shuts down the entire internet.
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