Nassim Taleb, the author of “Black Swan,” has taken to Twitter to lash out on Bitcoin. According to him, Bitcoin is not “a hedge against anything.”
Taleb is not convinced by the influx of institutional investors or the growing narrative that Bitcoin is a possible hedge against inflation. The Black Swan author and risk analyst invited his over 700k Twitter followers to a debate on whether there is a link between Bitcoin and inflation. He doubled down on his criticism of Bitcoin, concluding that there is no “reasonable argument” in favor of Bitcoin as an inflationary hedge.
This is not the first time that Taleb is criticizing Bitcoin. He bashed the leading cryptocurrency during a recent appearance on CNBC. Taleb likened Bitcoin’s rally to an open Ponzi scheme and argued that there was there’s “absolutely no reason it should be linked to anything economic.” According to him:
“[Bitcoin] has characteristics of an open Ponzi, everybody knows it’s a Ponzi. Basically, there’s no connection between inflation and Bitcoin. None. I mean, you can have hyperinflation and Bitcoin going to zero. There’s no link between them.”
But while Bitcoin critics like Taleb are trying to make a case against the digital asset, more traditional companies are beginning to add it to their balance sheets and even accept it as a payment option.