Not a Bitcoin fan – Nassim Taleb
- Bitcoin has experienced incredible growth this month
- BTC price at time of writing – $19,505.88
- Nassim Nicholas Taleb is a Lebanese-American essayist, mathematical statistician, former options trader and risk analyst
Bitcoin has actually performed quite well despite its current price woes. Since cash has only been around for 13 years, it has developed at a steady rate and has inevitably paved the way for all kinds of innovative and also brand new financial frameworks, including digital payments and also speculative investments.
Taleb discussed his thoughts and suggestions regarding Bitcoin during a recent conference.
He explained that he refers to Bitcoin as development. People believe that markets should behave as they believe they should. One of his main complaints about Bitcoin is that it experienced a significant spike during the pandemic, which he believes was caused by human error.
BTC gave people false hope – Taleb
As the pandemic progressed, the value of the buck dropped. As a result, many sought to include bitcoin – a cryptocurrency – in their bank and other withdrawals to protect themselves from financial turmoil. under your special control.
The price of Bitcoin has risen dramatically as a result of this time period’s rapid expansion. Taleb has a problem because he seems to have given people false hope and falsely created the impression of a strong market.
During this period, the Federal Reserve also attempted to offer financing at lower rates—or even no rates at all. He argues that this, in addition to the subsequent Bitcoin peaks, has given rise to a strong sense of fallacy in the business world.
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Fed interest rates pose a problem
This is now more evident than ever, given that rates have recently hit 6% and that assets such as bitcoin have lost over 70% of their value after hitting new all-time highs in 2015.
He argued that the current situation should be anticipated because it will undoubtedly give individuals even more up-to-date ideas about the value of money.
He looked over and said that people will quickly realize that there is still time to save money. You need to know what the appropriate and inappropriate financial strategy should be.
He also said that even if things go badly (the stock market is still going strong), he doesn’t think the Fed needs to cut interest rates right now because those rates are likely to keep the economy at least somewhat safe.
