Nassim Taleb is inspired by bitcoin.
The “big thoughts” books on the best-selling investment had nothing clever to say about cryptocurrency in a recent speech at CoinGeek/Zurich. It made it very transparent where the status was, as far away from that as possible.
In what appears to be a video link to the conference, Taleb looks at the camera and, consequently, at the viewer, speaks with the arrogant and haughty taste for which he has become known.
You can hear in his voice “come out of my lawn” how much he despises bitcoin buyers and who might disagree.
Taleb divided what he considers to be the main one into five categories:
It fails as a currency because Bitcoin is a speculative investment that requires “miners” without whom transactions are obviously not validated. To put it in Talebian terms, the need for mining operations is a sign of fragility in the world of cryptocurrencies. it compares it to gold that requires no maintenance once mined and minted.
2. It fails as a price store because Bitcoin does not turn its holders, if it had an artistic price like paintings or jewelry, it would be different, but it does not even have it.
Taleb says there are scenarios that can drive the value to zero, such as the miners’ imaginable extinction or the generation becoming obsolete as new and more complex technologies update it. He asserts that “if a non-performing asset has the slightest chance to hit an absorbent barrier, its existing cost will have to be zero. “
This fails as a hedge against inflation, he says, because the pieces will have to be valued in a currency that lacks volatility, this is not the case with Bitcoin. Talb points out that gold ultimately failed as currency when valuable steel costs skyrocketed in the era of 1978 to 1981 when the Hunt Brothers tried to corner the silver market.
4) It fails to hedge against excessive risks, according to Taleb, because it will not protect a portfolio in the event of a market crash. For example, it mentions how Bitcoin particularly sold the surprise pandemic of March 2020: anyone who tried to cover it with cryptography was hit.
The best writer of Fooled By Randomness and The Black Swan suggests that the cryptocurrency phenomenon is little more than the “monetization of a neopagan form of worship. “In his video presentation, he shows a slide from the 1969 Woodstock Festival, as an example of a neopagan cult.
It’s just below a “HODL” sign on the same slide: the “endure for life” designation that some Bitcoin holders cling to. If I noticed a video of Max Keizer and Michael Saylor before the participants at the Bitcoin convention in Miami a few weeks ago, you’re starting to figure out what Taleb is all about.
(Side note: it’s funny to see Taleb refer to an occasion as American as Woodstock when his past writings are almost entirely and boringly Eurocentric. I wonder if he knows, for example, the difference between Duane Allman and Greg Allman and what ” means in Sly and the Family Stone.
If you plan to use a Woodstock frame of reference to make comments, a true scholar should perceive the main points in their entirety. I feel like someone you trust has talked to him or read about it and hasn’t seen the movie or heard the album.
He is probably too busy reading, in English, French, German, Italian, Russian and Sanskrit, all the works of Socrates, Plato, Aristotle, Wittgenstein, Umberto Eco, Hegel, Marx and Toynbee. At least four languages? Tsk, tsk, tsk. )
Here is the bitcoin value table:
Lately, it has been trading at the diversity of 42,000 to 30,000, this follows the big drop since April’s all-time high of about 64,000. As long as the stock remains under this Ichimoku cloud, it will be in a downtrend. remarkable volatility for an asset class with such broad coverage.
Here is the Bitcoin price table by month:
You can see how Taleb can be convinced that cryptocurrency is in a bubble, is immediate and falls over much of the value territory: from less than 2,500 in 2017 to 65,000 earlier this year, then a drop to 30,000. Bitcoin has that bright look right now, no matter how much its followers boast about the future.
No advice.
My paintings on the marketocracy appear in The Warren Buffetts Next Door: The World’s Biggest Investors I’ve Never Heard Of from Forbes Investments editor Matt Schifrin.
My paintings on Marketocracy appear in The Warren Buffetts Next Door: The World’s Biggest Investors I’ve Never Heard Of, by Forbes Investments editor Matt Schifrin. I graduated from the University of North Carolina. No investment advice.