Nassim Taleb, the famous author of Black Swan being an admirer of Bitcoin once, now says that the true value of Bitcoin is not more than zero. Nassim said that the digital asset can neither be a store of value nor a hedge against inflation.
In a paper named “Bitcoin, Currencies, and Bubbles,” Taleb said:
Nassim Taleb mentioned that the flagship currency can not be called a short-term or long-term store of value and it does not account for it, not even remotely.
In addition to this, the paper added:
After witnessing a huge run in the year 2020 which was continued till two months before, Bitcoin has faced a significant plunge triggered by the crypto crackdown of China and backlash from Tesla owner Elon Musk.
Well, it won’t be completely wrong to say that the rise in the price of Bitcoin over the past 14 months has been due to the institutional interest in the coin and investments from firms such as MicroStrategy and Tesla.
A major sentiment of investing in the coin was due to the belief that it can act as a hedge against inflation, and has the potential to outperform Gold in long term.
For becoming a hedge against inflation, there should be a minimum variance against a bunch of goods and services and it is a quality that Bitcoin does not have.