Skip to content

The Black Swan author is dumping Bitcoin, citing high volatility

The Black Swan author is dumping Bitcoin due to high volatility

You can listen to ‘The Black Swan‘ by Nassim N. Taleb for FREE with Audible Trial HERE.

The Black Swan‘ Author Nassim Nicholas Taleb says he is getting rid of his Bitcoin, citing the asset’s volatility as a setback. Taleb’s sentiments come even as Bitcoin’s rally continues, with the digital currency hitting an all-time high of $49,000 on February 12.

In a series of tweets, Taleb states that a currency (Bitcoin) should not be more volatile than the price you sell or buy it. He also asserts that the culture around Bitcoin has been overtaken. Taleb explains that: 

“I’ve been getting rid of my BTC. Why? A currency is never supposed to be more volatile than what you buy & sell with it. You can’t price goods in BTC In that respect, it’s a failure (at least for now). It was taken over by Covid denying sociopaths w/the sophistication of amoebas”.

Bitcoin not comparable to gold

Taleb adds that Bitcoin’s ability to facility vices such as money laundering and tax fraud makes it not comparable to gold. Interestingly, the author views Bitcoin as more tractable than cash. For years, Bitcoin proponents have backed the asset to replace gold eventually.

With Bitcoin’s maturity, backers of the asset believe the volatility rate will eventually reduce. However, Taleb maintains that the digital asset’s volatility is not slowing down any time soon, a worrisome situation.

Bitcoin has failed as a hedge fund

Taleb also classifies Bitcoin as a currency and has failed as an asset and a hedge against central bank irresponsibility. This is despite leading institutions converting their cash reserves into Bitcoin.

MicroStrategy CEO Michael Saylor, a leading Bitcoin proponent, considers the asset a perfect method for preserving value. Notably, MicroStrategy has massively invested in Bitcoin, contributing to the current rally. Additionally, electric vehicle manufacturer Tesla has invested $1.5 billion in Bitcoin. 

Taleb, who also authored ‘Antifragile: Things That Gain From Disorder‘ has been an advocate for cryptocurrencies in the past. In 2020, after his native country of Lebanon issued restrictions about foreign currencies, Taleb called on citizens to use cryptocurrencies.

By press time, Bitcoin was trading at $46,419, according to data provided by Finviz.com. 

BTC/USD chart. Finviz.com

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.