‘Black Swan’ author calls bitcoin a ‘gimmick’ and a ‘game,’ says it resembles a Ponzi scheme

It’s well made but there’s absolutely no reason it should be linked to anything economic,” added Taleb, whose bestselling 2007 book examined highly improbable events and their potential to cause severe consequences.

Taleb had once held favorable views toward bitcoin, which was created in 2009 and is the world’s largest cryptocurrency by market value.

“Something that moves 5% a day, 20% in a month — up or down — cannot be a currency.

not willing to have capital appreciation, so much as wanting to have an alternative to the fiat currency issued by central banks: A currency without a government,” Taleb said.

Indeed, the price of bitcoin has soared higher in recent months — rising from under $11,000 per unit as recently as October to an all-time high of nearly $65,000 last week.

In keeping with its propensity for wild price swings, bitcoin has tumbled in the days since, ultimately breaking below $50,000 per token earlier Friday, a 23% drop in a little more than a week.

Taleb suggested bitcoin’s price is not what informs his now-critical view, saying “bitcoin could go to $1 million” and it wouldn’t change his argument.

Investors who are worried about inflation would be better off purchasing property than investing in bitcoin, Taleb said.

“But bitcoin, there’s no connection and, of course, the best strategy for investors is to own things that produce yields in the future.

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