With Zero Interest Rates Creating Bubbles and 'Bitcoin-Like Tumors', Black Swan Author Doubles Price Target to $0
The former Wall Street trader and author of "The Black Swan" was an outspoken critic of leading Bitcoin cryptocurrency BTC/USD for several years and didn't shy away from take more pictures last week.< /p>
What happened: Author and former options trader Nassim Taleb says many people don't understand how the economy works due to the current environment Federal Reserve interest rates.
"I think we had 15 years - 14 and a half years - of Disneyland which fundamentally destroyed the economic structure. Think about it - no interest rates. So whoever says being 40 has no experience in the markets," Taleb said on CNBC's "Squawk Box."
Taleb said that people under 40, including Millennials and GenZ, don't know "what is the time value of money".
Taleb argues that too low interest rates could have a lasting impact on people and the economy.
"Zero interest rate for a long time, you hurt the economy, you create a bubble, create tumors like bitcoin."
Taleb sees Bitcoin price continuing to decline, with a possible loose target price of $0.
"Bitcoin is still in use, it's still at $20,000. It's not at, you know, $1,000 or zero."
Related link: How to buy bitcoins
Why it matters: Taleb is the author of "The Black Swan", a book based on the concept of "black swan events", which are unpredictable events with impact massive.
The author was previously a supporter of cryptocurrencies, even urging people to use them to circumvent financial systems. Taleb changed his mind and later backtracked and argued that cryptocurrencies could be worthless.
Taleb also complained about Coinbase Global COIN cryptocurrency platform customer support and closed his account.
In 2021, Taleb called Bitcoin a "failure" and also went on to say that the leading cryptocurrency "exhibits the characteristics of an open Ponzi". Taleb argued that Bitcoin had no features to make it an inflation hedge, and was instead a "failure currency" and a Ponzi scheme.
To hedge against inflation, Taleb recommended buying land instead of Bitcoin.
BTC Price Action: Bitcoin is trading at $19,743 at the time of writing. The major cryptocurrency is down 8.4% in the past week and over 58% year-to-date in 2022.
Photo: Courtesy of nrkbeta on flickr
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The former Wall Street trader and author of "The Black Swan" was an outspoken critic of leading Bitcoin cryptocurrency BTC/USD for several years and didn't shy away from take more pictures last week.< /p>
What happened: Author and former options trader Nassim Taleb says many people don't understand how the economy works due to the current environment Federal Reserve interest rates.
"I think we had 15 years - 14 and a half years - of Disneyland which fundamentally destroyed the economic structure. Think about it - no interest rates. So whoever says being 40 has no experience in the markets," Taleb said on CNBC's "Squawk Box."
Taleb said that people under 40, including Millennials and GenZ, don't know "what is the time value of money".
Taleb argues that too low interest rates could have a lasting impact on people and the economy.
"Zero interest rate for a long time, you hurt the economy, you create a bubble, create tumors like bitcoin."
Taleb sees Bitcoin price continuing to decline, with a possible loose target price of $0.
"Bitcoin is still in use, it's still at $20,000. It's not at, you know, $1,000 or zero."
Related link: How to buy bitcoins
Why it matters: Taleb is the author of "The Black Swan", a book based on the concept of "black swan events", which are unpredictable events with impact massive.
The author was previously a supporter of cryptocurrencies, even urging people to use them to circumvent financial systems. Taleb changed his mind and later backtracked and argued that cryptocurrencies could be worthless.
Taleb also complained about Coinbase Global COIN cryptocurrency platform customer support and closed his account.
In 2021, Taleb called Bitcoin a "failure" and also went on to say that the leading cryptocurrency "exhibits the characteristics of an open Ponzi". Taleb argued that Bitcoin had no features to make it an inflation hedge, and was instead a "failure currency" and a Ponzi scheme.
To hedge against inflation, Taleb recommended buying land instead of Bitcoin.
BTC Price Action: Bitcoin is trading at $19,743 at the time of writing. The major cryptocurrency is down 8.4% in the past week and over 58% year-to-date in 2022.
Photo: Courtesy of nrkbeta on flickr
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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