“Renowned Author of Black Swan Criticizes Cryptocurrency, Labels Bitcoin as a Cult”

Nassim Taleb Calls Bitcoin Cult Ineffective and Fails to Deliver on its Promises

Bestselling author of The Black Swan, Nassim Taleb, has denounced Bitcoin as a false savior and an ineffective cult, falling short of its promises to streamline payments and facilitate illegal transactions. In a recent interview with Bloomberg, Taleb criticized crypto’s broader culture, arguing that it had transformed into a dysfunctional and fanatical movement.

Crypto Fails to Attract “Bad Guys”

Taleb went on to claim that crypto was a fad that falsely claims to be a refuge from regulation and that Bitcoin was not even attracting the bad guys anymore. According to Taleb, cryptocurrency is too traceable, unlike gold, which can be melted down into bars. He also claimed that crypto and finance do not mix well because finance has gravity rules that eventually hurt the model.

Taleb Changes Stance on Crypto

Taleb’s comments on crypto are significant, given that he was an advocate for digital currency’s anti-establishment ethos in 2019. At the time, Taleb praised Bitcoin for existing outside central banking and its potential to provide a haven from government oversight. However, he later sold his crypto in 2021 because he found the currency too volatile.

Federal Reserve Could Replace Bitcoin Next Month

Taleb’s remarks came on the same day that the founders of Binance and Coinbase lost close to a combined $2 billion after being hit with SEC lawsuits. The Securities and Exchange Commission Chair Gary Gensler sued Binance for alleged “wash trading” and Coinbase for allegedly selling unregistered tokens without permission.

Taleb also claimed that the Federal Reserve could pull the plug on Bitcoin at any moment and would replace it with FedNow, an instant payment service the Fed plans to introduce in July. FedNow will allow individuals and businesses to transfer money in real-time and access granted within seconds.

Conclusion

Nassim Taleb’s comments on Bitcoin highlight the crypto market’s volatility and uncertainty concerning government oversight and regulation. While the technology behind cryptocurrencies has enormous potential, the industry’s fanatical culture and dysfunctional behavior have raised concerns over security and legitimacy, making it challenging to turn crypto into a reliable and respected global currency.