Nassim Taleb calls Bitcoin fools detector

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Alex Dovbnya

Nassim Taleb suggests that much of the success of crypto has been caused by almost non-existent interest rates, which have driven people towards speculation instead of “real finance”.

Nassim Nicholas Taleb, the acclaimed author of “Black Swan”, recently shared his thoughts on Bitcoin in an interview with L’Express, describing him as “the fool detector”.

Taleb believes that Bitcoin has failed in its goal of becoming a decentralized currency and a store of value.

According to Taleb, it is vulnerable to inflation and cannot protect against black swan events.

The cryptocurrency craze can be attributed to near-zero interest rates as investors wanting risk-free investments find their opportunities limited. Therefore, it pushed people towards speculation instead of “real finance”.

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He also pointed to what could be described as a persistent Ponzi-like mentality taking hold in the tech world, referring to companies with no cash flow and no underlying financial stability.

Initially, Taleb was somewhat crypto-friendly as he was critical of the monetary policy adopted by former Federal Reserve Chairman Ben Bernanke after the 2008 crisis. However, he now believes that digital currencies are increasingly attracting manipulators and scammers, who have found refuge preying on unsuspecting investors duped by promises of easy and excessive gains.

That said, if the system ever manages to become regulated and more serious and honest, it is conceivable that digital currency could be an alternative to traditional finance.

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