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Taleb: “Bitcoin? It is a Ponzi scheme and is worth zero “

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The financial mathematician and expert in probability theory has highlighted the fragility of the asset, its volatility, and the exposure to the risk of having its value canceled

Only fools never change their minds, e Nassim Nicholas Taleb, the financial mathematician who launched the “black swan” concept in economics, it definitely has changed his mind about bitcoinsWhile he once defined cryptocurrencies as a form of “insurance” in relation to government control over money, he has recently taken a much more critical stance. Coming to say in an academic paper that bitcoin is “worth zero”, and in an interview that it is a “Ponzi scheme”.

According to the expert in probability and risk theory, the largest of the cryptocurrencies by capitalization failed to meet the definition of “currency without a government”, but also as a protection against inflation and as a “safe haven” investment. Taleb pointed out that bitcoin crashed badly in March 2020, recording a worse performance than the stock market, and then recovered with “the massive injection of liquidity” to counter the crisis. Sufficient proof, for Taleb, “that it cannot be remotely used to hedge against systemic tail risk “.

Few assets in the history of finance have been more fragile than bitcoinTaleb said in his paper. In practice, cryptocurrency does not generate yields or dividends, as do gold and precious metals, but unlike the latter, it has a maintenance cost,…

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