“Cryptocurrency Ice Age” – Nassim Taleb Says The Cryptocurrency Crash Will Never End

Nassim Taleb spoke again about the cryptocurrency crash – for the author of the best-selling “Black Swan” the crash period of the cryptocurrency market could last “forever”. According to the economist, the word “cryptocurrency winter” misleads investors.

Taleb took to Twitter to talk about the current state of the market, which many in the industry are calling the crypto winter. When people talk about winter, Taleb says they mean a short period of time followed by another warmer season. However, in the cryptocurrency industry, this expression takes on a very different meaning, Taleb says.

The economist talked about the crypto winter that happened in 2018 and lasted more than a year, not several months. Now, according to Taleb, the crisis could drag on for a long time and then become an “ice age” for the cryptocurrency market.

Cryptocurrency Winter

Cryptocurrencies are extremely volatile. Ups are often followed by big downs. When a price drop occurs for an extended period of time, it is often referred to as a cryptocurrency winter. The term originated on Bitcoin Talk years ago when bitcoin was undergoing its first slumps.

The first (unofficial) cryptocurrency winter occurred in 2011, at which point the price of a single bitcoin reached $1.05. But shortly after, it dropped to $0.67. The nearly 40% drop in value was enough for some critics to declare the cryptocurrency dead. Exactly as it is now.

Fast forward to early February 2018, Bitcoin’s price is down about 65%. And almost all cryptocurrencies followed the fall. The first “official” cryptocurrency winter put an end to many investors’ dreams as the cryptocurrency market fell about 80% from its highs at the end of 2017.

Now, in 2022, the cryptocurrency market is facing another winter, with the cryptocurrency market falling more than 60% in a 6-month slump.

For Taleb, who is one of the biggest critics of bitcoin, the current winter should be considered an ice age.

Cryptocurrency Ice Age

Taleb claimed that cryptocurrency’s temporary winter could turn into an “ice age,” referring to the period in history when glaciers covered large areas of the planet for about 11,500 years.

According to taleb, the ice age of cryptocurrencies will cause the extinction of some cryptocurrency companies and also several tokens.

“The journalistic expression ‘Crypto winter’ is very misleading; implies seasonality and, perhaps worse, a trend reversal. No, the crypto winter may not be transient, and what you call a winter could turn into a permanent and inevitable ice age full of extinctions.”

The journalistic expression “Crypto Winter” is very deceptive; it implies seasonality and, perhaps worse, a return to a certain trend. No, your winter may not be transient, and what you call winter may degenerate into a permanent and inescapable ice age full of extinction.

— Nassim Nicholas Taleb (@nntaleb) June 23, 2022

Companies such as Terra (Luna), Celsius, Three Arrows Capital (3AC), Coinbase, CoinFLEX, and several other platforms are facing difficulties due to the downturn in the cryptocurrency market. Major cryptocurrency firms such as BlockFi, Coinbase, and Gemini have laid off a significant portion of their employees.

Platforms resort to extreme measures including suspending deposits and withdrawals.

So all the signs of a typical cryptocurrency winter are already there. Bitcoin, the world’s largest cryptocurrency, is down more than 70% from its all-time high, but some believe the $17,600 level may not be the all-time high in the current bear cycle.

Bitcoin has managed to partially recover from the recent dip and is currently trading just above the $21K level. However, it continues a downward trend in the near term, which could trigger an unprecedented market-wide crisis.