Bitcoin is not tied to a single government or country and is often labeled as a repository of value assets and a hedge against other areas of finance. Nassim Taleb, a former risk analyst and author, thinks otherwise.
In an interview with CNBC on Friday, after noting the resemblance of Bitcoin (BTC) to a Ponzi scheme, Taleb said, “There is no link between inflation and the currency. No.”
I mean, you can get hyperinflation and Bitcoin is going to zero. There is no connection between them. “
This isn’t the first time Taleb has expressed skepticism about Bitcoin. Earlier this year, he mentioned selling his BTC holdings because he had issues with its volatility. However, his position was based on Bitcoin as a currency, not as a store of value – a role into which the asset has transitioned over the years.
However, Taleb seems to fully appreciate the technology behind BTC. “It’s a beautifully designed cryptographic system,” he told CNBC. “It is well made, but there is absolutely no reason to link it to anything economic,” he added.
“If you want to hedge against inflation, buy a piece of land. Grow, I don’t know, olives on it. You know, you have olive oil, when the price collapses, you have something, but Bitcoin is not related. “
He described the importance of owning money-making vehicles and called Bitcoin a gimmick. Taleb also made other comments about Bitcoin in the interview, including talking about currencies versus speculative assets.
Last year, Taleb called most Bitcoin advocates idiots, citing their lack of knowledge on economic topics.