Bitcoin Is a Tumor, Says Black Swan Author Nassim Taleb

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Crypto fan-turned-hater Nassim Nicholas Taleb wants you to know that Bitcoin is a tumor.

In an interview with CNBCs Squawk Box Thursday, the author of The Black Swan argued that anyone under 40Millennials and GenZdont understand how the economy works because of the Federal interest rate environment in which theyve grown up.

I think that weve had 15 years14 and a half yearsof Disneyland that basically has destroyed the economic structure, Taleb said. Think about itno interest rates. So anyone who says 40 years old […] has no experience in markets. Zero. They dont know what the time value of money is.

Talebs bestselling book, The Black Swan, explores luck, risk, uncertainty, and probability. Its based on the concept of a black swan event, which is unpredictable, has massive impact, and is rationalized after the fact to be less random and more predictable.

“I think that we’ve had 15 years of Disneyland that basically has destroyed the economic structure,” says @nntaleb. “You are hurting the economy.. creating tumors like #bitcoin. There was at some point such a thing as a discount rate. All these notions escape the new generation.” pic.twitter.com/gebbrcws7I

Squawk Box (@SquawkCNBC) September 15, 2022

In his Thursday interview, Taleb argued that the US Federal government lowered interest rates far too much, and eventually society will have to face the consequences.

Zero interest rate for a long period of time, you are hurting the economy, you are creating bubbles, creating tumors like Bitcoin, Taleb said.

Just a few years ago, Taleb was into cryptocurrencies and owned some himself. Back in April 2020, he told Lebanese people to use cryptocurrencies! to get around the country’s financial system.

A few months later, he complained about Coinbases customer support on Twitter and then closed his Coinbase account.

By February 2021, Taleb declared Bitcoin a failure because of its volatility and said he was selling his Bitcoin. In April last year, he continued his downward spiral into no-coinerdom, claiming Bitcoin has characteristics of an open Ponzi.

While Taleb is now urging society to go back to normal economic life, he also argued that were still far away from stressors.

Bitcoin is still used, its still at $20,000. Its not at, you know, at $1,000 or zero.

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