Bitcoin
Reading time: ~2 m
Bitcoin’s price movements during periods of financial turmoil in the US did not confirm its role as a safe-haven asset, according to famous writer and scholar Nassim Taleb.
So the US hits a funding risk => bitcoin goes down.
Earlier, inflation shows up => bitcoin went down.
How many “bitcoin is a hedge” suckers are left?#Suckers— Nassim Nicholas Taleb (@nntaleb) May 25, 2023
The author of the cult work “The Black Swan” drew attention to the fact that the price of the cryptocurrency was falling both with rising inflation and current problems with budget financing.
“How many suckers are left for whom “Bitcoin is a hedge”?” Taleb asked.
At the same time, he noted for potential opponents that it is not worth citing the profitability of cryptocurrency in previous years as an argument. Investors invest in the future growth of an asset based on today’s price, the writer emphasized.
Twitch co-founder Emmet Shear agreed with his sentiment, but noted that digital gold has a different “real purpose.”
Bitcoin isn’t a hedge. It’s a technology for remittances and holding value securely in countries which screw over their citizens with below-market exchange rates and corruption. Sure, it has downsides…but what’s their alternative?
— Emmett Shear (@eshear) May 26, 2023
“Bitcoin is not a hedge. This is a technology for remittances and safe storage of value in countries that deceive their citizens with below-market exchange rates and corruption,” the entrepreneur said.
Startuper Shaan Puri supported Shir, calling cryptocurrency an alternative to fiat money systems. In his opinion, bitcoin will push them out, as happened with postal services after the advent of electronic correspondence.
I would say it’s an alternative monetary system to the fiat systems.
Similar to how email was an alternative communication system to the postal service
— Shaan Puri (@ShaanVP) May 26, 2023
The Present Father’s podcast host StudMuffin.eth still found the role of insurance for digital gold:
“Bitcoin does not hedge financial risk or inflation. It is also not insurance against deflation. Its main value is a hedge against bank failures. When SVB collapsed, bitcoin rose.”
Bitcoin is not a hedge against funding risk or inflation. It is also not a hedge against deflation. It’s primary value as a hedge is against bank failures. When SVB collapsed, bitcoin surged.
— StudMuffin.eth (@schemesymcplots) May 25, 2023
One of the commentators replied to Taleb that he hadn’t heard a “hedge meme” from representatives of the bitcoin community for a year. However, a prominent proponent of this narrative, Rich Dad Poor Dad bestselling author and entrepreneur Robert Kiyosaki, reiterated his call on May 19 to invest in cryptocurrencies, gold and silver. He considers these assets “the best insurance against corruption and incompetence.”
Recall that in his criticism of bitcoin, Taleb has already compared it with a “tumor” and called it a “gold mine” for lawyers. More than a year ago, he stated that the cryptocurrency will not save investors from inflation and falling markets.
#Nassim #Taleb #questioned #bitcoin #financial #insurance
