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BTC $43233.94 (1.15%)
ETH $3043.00 (4.44%)
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BCH $513.03 (-0.1%)
BSV $131.03 (-2.7%)
LTC $151.44 (-0.6%)
BNB $347.98 (-0.8%)
ADA $2.27 (-5.9%)
DOGE $0.20 (-1.8%)

‘Black Swan’ Author Calls Bitcoin a Ponzi Scheme

Bitcoin_is_an_‘open_Ponzi_scheme,’_says_‘Black_Swan’_author
  • Nassim Taleb doubled down on bitcoin as a Ponzi scheme and a failed currency.
  • Some analysts view bitcoin as a hedge against inflation.
  • Taleb said there is no connection between inflation and bitcoin.

Black Swan author Nassim Taleb reaffirmed his stance that bitcoin is an open Ponzi scheme and a failed currency, according to a CNBC interview last Friday.

Taleb said to Squawk Box:

There’s no connection between inflation and bitcoin. I mean, you can have hyperinflation, and bitcoin becomes zero. There’s no link between them.

Taleb added he was fooled into thinking Bitcoin could be a viable alternative to fiat currency. But he surmised that a currency that has no government support is “just speculation” and a “game”. To elaborate, he said that Bitcoin failed in its supposed role as a replacement for government-backed money, mainly because of its volatility

However, some analysts view Bitcoin, often referred to as digital gold, as a boundary toward inflation. Many have highlighted its similarities with the precious metal.

With reference to Taleb’s words, a Ponzi scheme is a type of fraud technique whereby crooks steal money from investors. Not just this, but they mask this theft by funneling profits to clients from funds provided by newer investors.

On the other hand, a number of companies actually accept bitcoin as payment for goods and services, including electric vehicle maker Tesla. Besides, those inside the crypto community believe it’s an asset and store of value.

Keeping that in mind, the price of Bitcoin has in fact soared higher in recent months. Starting from under $11,000 per unit as recently as October, it has gone on to reach an all-time high of nearly $65,000 last week. Increased institutional adoption has been cited as one factor in its climb.

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A Computer Engineering graduate who writes news focuses on cryptocurrency-related and blockchain technology. He is enjoying using his skills to contribute to informing people of the exciting technological advances that happen every day.