Famed economist and author of “Black Swan” Nassim Taleb has claimed in a recent paper that Bitcoin isn’t worth anything – and that it is a failed currency.
Before we jump into the guts of what looks a lot like academic delusion, let’s just state that at the time of writing Bitcoin is worth more than $30,000 USD, it began trading in 2021 at around $10,000, and has not been “worth zero” ever.
So – that being said, a very intelligent person who is widely followed in the media is telling everyone that Bitcoin is worthless. Hard as it may be to believe, Nassim Taleb actually has reasons for why Bitcoin has no value.
Let’s take a look…
Nassim Taleb’s Views on Bitcoin are Laughable
It is difficult to reconcile these assertions with reality. This is fair warning.
In his paper Taleb states that,
“The total failure of bitcoin in becoming a currency has been masked by the inflation of the currency value, generating (paper) profits for large enough a number of people to enter the discourse well ahead of its utility.”
In point of fact, Bitcoin is used as both a means of transaction and a store of value. It is impossible to dissect a term like “inflation” in the context used above – as it appears to be nonsensical.
Bitcoin is traded freely on global exchanges – some regulated – some not so much. It is also traded in the form of derivatives in major markets – like the USA.
There is no massive price deviation between the CME’s Bitcoin futures contracts, and the market price on a large crypto CEX.
If some sort of “inflation” was taking place that pushed Bitcoin or any other token away from the value that a large number of market participants thought was fair – it would manifest in Bitcoin’s price.
Clearly – the markets think that Bitcoin is fairly priced at above $30,000 today – although it is a volatile asset.
The idea that somehow Bitcoin is attracting buyers ahead of its utility is also pretty hard to defend with around 6% of the US…