The author of the classic book “Black Swan,” Nassim Nicholas Taleb, has used social media to make predictions about the demise of Bitcoin, the first and largest cryptocurrency in the world. The “ultimately killing Bitcoin will not be a crash but inexorable decay,” wrote Taleb on Friday. “Fads are more threatened by indifference than by disgust,” he continued.
These comments have been made at a time when market volatility and varying levels of regulatory scrutiny are being applied to Bitcoin and other cryptocurrencies. According to Taleb, Bitcoin currently has a significant market advantage, but its decline may not be as abrupt as some may anticipate.
The buying and selling volume of Bitcoin has been “slowly disappearing,” according to Taleb earlier this month, indicating a decrease of more than 85% from its high.
He issued a dire warning, stating that as demand declines, market manipulations get easier and that ultimately, “that is how Open Ponzis implode.” Although Taleb’s ideas are undoubtedly provocative, it is vital to remember that market manipulation and declining interest are risks that many assets in the financial markets confront rather than just Bitcoin.
Taleb has long been an opponent of both Bitcoin and the Federal Reserve. He admitted the fallacy of the argument that Bitcoin is a better alternative to the Federal Reserve in one of his previous tweets, even going so far as to state, “Fed Reserve is unhealthy; Bitcoin is worse.” Additionally, he has cast doubt on Bitcoin’s ability to serve as a hedge against inflation and investment risks by pointing out instances in which its value declined in circumstances where it was expected to serve as a safety net.
Taleb, who has developed a reputation for comprehending risk and uncertainty, offers a crucial counterweight to the bullish sentiments frequently heard in the cryptocurrency space with his cautious thoughts on Bitcoin. It’s still unclear if Bitcoin will experience “inexorable decay” as Taleb predicts, or if it will continue to develop and respond to market challenges.
