Amidst the stability of Bitcoin, with its value stuck at $30,000 for almost 6 months, the cryptocurrency seems to have become the dull topic in the market. But is this really the end of the digital currency, or just a pause for another bull cycle?
According to the weekly candles, Bitcoin shows a stability that many interpret as dull. However, while some see silences, others see some interesting developments in this phase.
Nassim Nicholas Taleb, known for his work “Black Swan”, recently declared Bitcoin “dead”, pointing to the decline in transaction volume. Taleb classifies Bitcoin as a Ponzi scheme and suggests that the reduction in volume makes the currency more susceptible to manipulation and portends eventual collapse.
“When I said people have lost interest in bitcoin, it was on this basis: BTC volume is slowly declining, below >85% of peak. As the volume decreases, manipulations become easier, but at some point the manipulators will have to leave. This is how open Ponzi implodes.”
When I said that pple lost interest in bitcoin, it was based on this: BTC volume is slowly disappearing, >85% lower than peak.
As the volume drops, manipulations become easier, but at some point manipulators will have to stop.
This is how Open Ponzis implodes. pic.twitter.com/K8fJDeaftw
— Nassim Nicholas Taleb (@nntaleb) August 11, 2023
Bitcoin dead?
On the other hand, it is claimed that the cryptocurrency market is simply in a post-party sobriety phase. Instead of focusing on prices and volatility, the crypto community focuses on coding, building and improving technology.
Taleb, despite being recognized for his intellectual contributions, has surprisingly taken an anti-Bitcoin stance following a public spat with digital currency enthusiasts in 2021. The change in stance has raised questions about his true intentions.
Meanwhile, the debate between Bitcoin supporters and critics continues. There are those who argue that cryptocurrency is a solution to the problems inherent in traditional banking, especially when it comes to transferring value.
Regardless of the differing opinions, however, the truth is that Bitcoin and other cryptocurrencies have stood the test of time, defying predictions of their demise time and time again.
In addition, it is important to take the long-term perspective into account. While Bitcoin’s price is now stable, history has shown that the cryptocurrency is anything but predictable. So what is perceived as a “boring” phase may simply be the calm before another storm.
Who is Nassim Taleb?
Nassim Taleb, known for his books “The Black Swan” and “Antifragile”, has raised eyebrows in the cryptocurrency world with his take on Bitcoin. While Taleb recognizes the disruptive potential of blockchain technology, he does not hesitate to criticize Bitcoin.
One of Taleb’s main criticisms of Bitcoin relates to its volatility. For the author, an effective currency should not have such drastic value fluctuations in a short period of time. This instability, he said, makes Bitcoin unsuitable as a reliable store of value or medium of exchange.
In February 2021, Taleb surprised many by revealing that he was relinquishing his bitcoins. The decision was justified by his belief that the cryptocurrency has failed to be a hedge against the central authority, mainly due to its volatile nature.
Taleb’s criticism is not limited to how Bitcoin works. He also turned his critical eye on the Bitcoin community, implying that some of its members are often “idiots”.
However, it is important to note that despite Taleb’s skepticism of Bitcoin, he sees glaring flaws in the fiat currency system. The ability of governments to print money at will, potentially causing inflation, clearly worries him.
To date, however, Taleb maintains that Bitcoin is still not fully living up to its promise of being a viable alternative.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
