Nassim Taleb declares the death of Bitcoin: "The Ponzi scheme is imploding"
Written by Gustavo Bertolucci, traslated from livecoins.
Amidst the stability of Bitcoin, with its value anchored at $30,000 for almost 6 months, the cryptocurrency seems to have become the boring topic of the market. But is it really the end of the digital currency, or just a pause before another cycle of growth?
According to the weekly candlesticks, Bitcoin displays a stability that many interpret as dull. However, while some see calmness, others identify a series of interesting developments during this phase.
Nassim Nicholas Taleb, known for his work "The Black Swan," recently declared Bitcoin "dead," pointing to the decrease in transaction volume. Classifying Bitcoin as a Ponzi scheme, Taleb suggests that the reduction in volume makes the currency more susceptible to manipulation and predicts an eventual collapse.
"When I said people lost interest in bitcoin, it was based on this: BTC Volume is slowly disappearing, down >85% from the peak. As volume drops, manipulations become easier but, at some point, manipulators will need to exit. This is how Open Ponzis implode."
On the other hand, it is argued that the cryptocurrency market is simply in a post-party sobriety phase. Instead of focusing on prices and volatilities, the crypto community is focused on coding, building, and improving the technology.
Taleb, despite being recognized for his intellectual contributions, surprisingly adopted an anti-Bitcoin stance after a public feud with digital currency enthusiasts in 2021. The change in position raised questions about his true intentions.
Meanwhile, the debate between Bitcoin supporters and critics continues. Some argue that the cryptocurrency represents a solution to the inherent problems of the traditional banking system, especially in terms of value transfer.
However, regardless of the varied opinions, the truth is that Bitcoin and other cryptocurrencies have withstood the test of time, defying predictions of their death repeatedly.
Furthermore, it is important to consider the long-term perspective. While the price of Bitcoin may be stable now, history has shown that the cryptocurrency is anything but predictable. Thus, what is perceived as a "boring" phase may just be the calm before another storm.
Who is Nassim Taleb?
Nassim Taleb, known for his books "The Black Swan" and "Antifragile," has raised eyebrows in the world of cryptocurrencies with his opinions on Bitcoin. Although he has recognized the disruptive potential of blockchain technology, Taleb does not hesitate to criticize Bitcoin.
One of Taleb's main criticisms of Bitcoin relates to its volatility. According to the author, an effective currency should not have such drastic fluctuations in value over short periods of time. This instability, he argues, makes Bitcoin unsuitable as a reliable store of value or medium of exchange.
In February 2021, Taleb surprised many by revealing that he was getting rid of his bitcoins. The decision was justified by his belief that the cryptocurrency had failed in its mission to be a hedge against central authority, mainly due to its volatile nature.
Taleb's criticisms are not limited to the functioning of Bitcoin alone. He has also directed his critical eye towards the Bitcoin community, insinuating that some of its members tend to be "idiots."
However, it is important to note that despite Taleb's skepticism about Bitcoin, he sees evident flaws in the fiat currency system. The governments' ability to print money at will, potentially causing inflation, is a clear concern for him.
However, so far, Taleb maintains that Bitcoin has not fully fulfilled its promise of being a viable alternative.