Bitcoin has gained significant media attention in recent days, in line with its price increase to nearly $ 50,000, the institutional implications of Tesla’s recent $ 1.5 billion purchase. Nassim Nicholas Taleb, who previously worked as a risk analyst and options broker, sees Bitcoin (BTC) with less optimism.
“I got rid of my BTC”, Taleb said in a tweet on Friday, as reported by BNN Bloomberg. “Why? A currency should never be more volatile than what you buy and sell with it,” he explained, also noting:
“You cannot set commodity prices in BTC. In that respect, it is a failure (at least for now). It was taken over by Covid, denying sociopaths with the sophistication of amoebas. “
Taleb’s logic regards Bitcoin as a currency, not a store of value – although the latter has redefined the role of the digital asset in some ways in recent years, at least according to several participants in the crypto industry. Some people, like Bitcoin Cash (BCH) defender Roger Ver, argued that BTC was created to serve as a payment method. See often postulate that the current structure of Bitcoin does not allow such a transactional function, echoing some of Taleb’s concerns.
Gold advocate and financial commentator Peter Schiff also tends to speak out against Bitcoin, although an increasing number of mainstream companies obviously think differently, seeing value in the digital asset.
One of Bitcoin’s biggest recent proponents, MicroStrategy CEO Michael Saylor, sees Bitcoin as a method of preserving value while other assets and currencies are worth less.