Home Author ‘Black Swan’ Author Dismantles Key Bitcoin Narrative

‘Black Swan’ Author Dismantles Key Bitcoin Narrative

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Alex Dovbnya

Nassim Taleb Says Bitcoiners Picking Comparative Returns Shouldn’t Be Ignored

Lebanese-American mathematician and philosopher Nassim Nicholas Taleb complaints that Bitcoiners who select comparative returns for Bitcoin should be ignored.

When confronted with the dismal performance of Bitcoin, Bitcoiners usually argue that the cryptocurrency’s returns are still huge if you zoom out far enough.

MicroStrategy CEO Michael Saylor, whose company has already lost around $1 billion on its audacious bitcoin bet, reiterated the popular talking point recently during an interview with CNBC.

However, as Taleb points out, the average purchase price of Bitcoin in circulation is currently $23,430. Meanwhile, the biggest cryptocurrency is now trading at $20,406 on the Bitstamp exchange. This basically means the average buyer is in the red.

BTC
Image by tradingview.com

According to data provided by IntoTheBlock, around half of Bitcoin holders are sitting on losses at current prices. The major cryptocurrency has crashed 70.36% from its record high in November. Those who bought the cryptocurrency near the price peak suffered devastating losses.

As noted by Taleb, the average purchase price of other major assets is well below their current market price.

The bestselling author doesn’t mince words when it comes to Bitcoin and its supporters. Earlier this week, Taleb said the world’s largest cryptocurrency was “a test of intelligence”, gloating over its sudden collapse.

He further mentioned that MicroStrategy holding $410 million worth of Bitcoin in a custodial account goes against the “dumb”, “naive”, and “conspiratorial” people who bought into the “no trust” narrative.

Last month, as reported by U.Today, Taleb felt Terra’s Do Kwon was more dangerous than late fraudster Bernie Madoff.