“The Black Swan” author Nassim Taleb, recently likened Bitcoin to a tumor, as he blamed the Fed for hurting the economy.
From environmental concerns to backlash for allegedly having the features of a Pyramid Scheme, Bitcoin has had its fair share of criticism. As the global financial scene faces unique troubles due to new realities, it appears these criticisms have not seen a stop, especially with Bitcoin’s recent correlation with traditional finance.
A Lebanese-American risk analyst and author of “The Black Swan,” Nassim Nicholas Taleb is the latest in line to slander the firstborn crypto. Taleb appeared on Thursday on CNBC’s Squawk Box show to discuss markets, risk, and uncertainty.
Squawk Box host Andrew Ross Sorkin sought Taleb’s opinion on the state of the American economy and if the Federal Reserve is making the right choices in combating the economic concerns. In response, Taleb noted that the growing issues with the economy are due partly to the inexperience of the younger generation due to living in a predominantly bubbling economy in the past.
“I think we’ve had 15 years of Disneyland that basically destroyed the economic structure… You are hurting the economy… creating tumors like bitcoin. There was at some point such a thing as a discount rate. All these notions escape the new generation.”
“I think that we’ve had 15 years of Disneyland that basically has destroyed the economic structure,” says @nntaleb. “You are hurting the economy.. creating tumors like #bitcoin. There was at some point such a thing as a discount rate. All these notions escape the new generation.” pic.twitter.com/gebbrcws7I
— Squawk Box (@SquawkCNBC) September 15, 2022
Furthermore, according to Taleb, the Federal Reserve’s lowering rates helped create “tumors like Bitcoin.” Taleb’s opinion stems from the fact that Bitcoin has mostly bloomed due largely to economic concerns.
The cryptocurrency adoption rate surged much higher in 2020 during the COVID-19 pandemic, as traditional finance hit a messy stop. Investors turned to Bitcoin and other digital assets as a hedge against the growing inflation and economic issues. Taleb thinks Bitcoin’s growth can be likened to a tumor.
“The Fed overshot by lowering interest rates too much. The first 100 basis points worked; the second, much less. Zero interest rate, of course, for a long period of time; you’re hurting the economy, you’re creating bubbles, you’re creating tumors like Bitcoin,” Taleb said.
This would not be the first time Nassim Taleb has been swiping at Bitcoin. As previously reported by TheCryptoBasic in February, Taleb took to Twitter to criticize Bitcoin, calling the asset “a perfect sucker game” that only thrives when interest rates are down. Taleb’s comments followed Bitcoin’s crash below $40k at the onset of the bear market.
Furthermore, Taleb is also known for dubbing Bitcoin a “Ponzi Scheme,” noting that it is worth zero and cannot hedge against inflation. Taleb’s criticism of the asset came after he previously lauded it as a way for investors to protect themselves from the government’s control over money.
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