Bitcoin “A magnet for fools, a detector of fools”, says author of “The Black Swan” – Bitcoin (BTC/USD)

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Nassim Nicholas Taleb, BitcoinBTC/USD critic and eminent mathematical essayist and statistician, said the top cryptocurrency is now a magnet for idiots.

What happened: In a recent interview with French magazine LExpress, the author of The Black Swan said that Bitcoin was a fool detector.

Taleb posted a translated version of LExpress’ interview with Laeticia Strauch-Bonarton on his Medium Blog.

Regarding the cryptocurrency craze, Taleb said it is a product of near-zero or sometimes negative interest rates with no real market functioning.

Lower rates create asset bubbles without necessarily helping the economy, the former options trader and risk analyst said. He said it gave rise to malignant tumors like bitcoin.

Taleb said he mistakenly thought that Bitcoin could be a bulwark against the distortions of this monetary policy.

I think the crypto universe attracts manipulators and scammers. It also has a generational vice: it is filled with young people who have no experience, says Taleb.

See also: Is cryptocurrency a good investment?

Why it matters: In the interview, Taleb referenced his 2021 article titled the Bitcoin Black Paper, “as opposed to the Bitcoin White Paper written by Satoshi Nakamoto, the pseudonymous creator of the original cryptocurrency.

He said Bitcoin failed to satisfy the concept of money without government. Taleb said that Bitcoin is not a short or long term store of value and cannot function as a hedge against inflation nor does it protect against government tyranny.

Taleb said Bitcoin compares poorly to gold. Technology comes and goes, gold remains, at least physically. Once neglected for a brief period, bitcoin would necessarily crash, the author said.

Previously, Taleb compared cryptonism to communism and called it the hyper-naive utopianism of the 21st century.

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