Nassim Taleb beats bitcoin, says it’s worth exactly zero



“Black Swan” author Nassim Nicholas Taleb, who once believed bitcoin was a promising new currency because it was not controlled by a government, has swept the digital asset, saying “it can’t be neither a long or short term store of value “.

In an article titled “Bitcoin, currencies and bubbles“Taleb said:” In its current version, despite the hype, bitcoin has failed to satisfy the notion of ‘money without a government’ (it turned out to be not even a government currency. everything), can not be short or long term. store of value (its expected value is no more than 0), cannot function as a reliable hedge against inflation, and worse, does not even remotely serve as a rear protection vehicle for catastrophic episodes .

Explaining his take on why bitcoin is worth exactly zero, Taleb said 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. “Cryptocurrencies require a sustained interest in them,” wrote the author of several well-known finance books in the journal, which was published on his blog on Sunday.

This is not the first time that Taleb has criticized bitcoin. In April, he said cryptocurrency was a gimmick and was too volatile to be an effective currency. In his new article, the former options trader said that if an unproductive asset has the lowest probability of hitting an absorbing barrier, then its current value should be zero.

“Assets without income are problematic. The implication is that, due to the absence of any dividend yield benefiting the holder of bitcoin, if we expect that at any point in the future the value will be zero when the miners are gone, the technology becomes obsolete, future generations get into other such ‘assets’ and bitcoin loses its appeal to them, so the value must be zero now, ”Taleb wrote.

On the failure of bitcoin as a currency, said Taleb, 12 years after the start of his life, despite the fanfare, there is currently no fixed price in bitcoin, floating in fiat in the currencies of the economy .

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