Bitcoin
Out of context: Reply #2174
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- drgs1
https://www.moneycontrol.com/new…
In a change of heart, The Black Swan author Nassim Nicholas Taleb now sees no value in holding a bitcoin. The former options trader said the world's largest cryptocurrency by market cap is worth "exactly zero" and does not satisfy notions of it as a currency without government support, as a hedge against inflation and as a safe haven investment.
"Few assets in financial history have been more fragile than bitcoin," he said in his paper, 'Bitcoin, Currencies, and Fragility,' published in late June.
Another reason for his stance reversal is that bitcoin requires a sustained amount of interest to maintain it. In contrast, "gold and other precious metals are largely maintenance-free, do not degrade over a historical horizon, and do not require maintenance to refresh their physical properties over time," he said.
Making a case against its status of being a hedge, Taleb cited the flash crash of March 2020 where bitcoin dropped further than the stock market and recovered with it "upon the massive injection of liquidity." That’s "sufficient evidence that it cannot remotely be used as a tail hedge against systemic risk," he said.
- Taleb went 180 because of a twitter fight. He's doing it out of spite. Even went on to talk at a Bitcoin SV conference with Craig Wright. He's the fragile one.ESKEMA
- Captain Obvious...********
- Interestingly tho' he's only speaking about holding, while probably loading shorts in the background...********