Nassim Taleb calls investors idiots, says Bitcoin is no hedge

Nasim Taleb, author of the books The Logic of the Black Swan and Antifragile, returned this Thursday to criticize Bitcoin (25). In the tweet, the writer teases those who defend Bitcoin as a means of protection.

“Then the US runs a liquidity risk, bitcoin falls.
Before that, inflation appeared, bitcoin fell.
how many suckers [que dizem que] “Bitcoin is a hedge” still exists?

Trading at $26,250 at the time of writing, Bitcoin was down as much as 4.9% (24) on Wednesday, but it wasn’t alone. US stock indices and even gold, considered the biggest defensive asset, also bottomed on days of Fed speeches.

Nassim Taleb calls Bitcoin investors idiots while ignoring previous gains

In March 2010, 5,050 bitcoins were sold for $5.02 in the first known transaction, about $0.00099792 per BTC. Trading today at $26,250, that means Bitcoin is up 2,630,471,280% over the period.

Despite cryptocurrency’s recent winter, gains are 244% against the dollar over the past five years. Compared to our currency, the real, the percentage rises to 359%.

However, Nassim Taleb ignored all previous Bitcoin achievements while calling his investors idiots.

“Footnote to #bitidiots: In finance, you don’t invest for past performance (there is no known financial time machine at the time of this tweet); you are investing for FUTURE performance and using TODAY’s current price, not 2014 prices as a baseline.”

Nassim Taleb Calls Bitcoin Investors Idiots on Twitter.
Nassim Taleb Calls Bitcoin Investors Idiots on Twitter.

Based on more recent data, Bitcoin will post a 58% increase in value by 2023, making it difficult to find another investment with similar performance. Therefore, unless Taleb has news of the future, as a time traveler, it is difficult to obtain more current data.

Bitcoin as a hedge

Although it is a new asset compared to gold, Bitcoin has already proven to be an asset against inflation and banking crises, contrary to what Taleb claims.

The best example of this was the peak in 2021, the result of the exaggeration of government economic stimulus, popularly referred to as “printing money”. Bitcoin price later fell as the Fed initiated monetary tightening to protect the dollar, nothing more natural.

This aggressive stance on the part of the Fed surprised even banks, causing some giants to go bankrupt recently. Bitcoin, however, seized the moment to achieve another 100% rally in less than five months.

Now the issue of the US debt ceiling could be another opportunity for Bitcoin to take off. After all, aside from a risk of default, which would see investors migrating to Bitcoin, the US government’s second alternative is to print more money, devaluing the currency.

Source: Live Coins

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