‘Black Swan’ author calls bitcoin a ‘gimmick’ and a ‘game,’ says it resembles a Ponzi scheme

"Black Swan" author Nassim Taleb on Friday criticized bitcoin as a "gimmick," telling CNBC he believes it's too volatile to be an effective currency and it's not a safe hedge against inflation."Basically, there's no connection between inflation and bitcoin. None. I mean, you can have hyper inflation and bitcoin going to zero. There's no link between them," Taleb said in a "Squawk Box" interview."It's a beautifully set up cryptographic system. It's well made but there's absolutely no reason it should be linked to anything economic," added Taleb, whose bestselling 2007 book examined highly improbable events and their potential to cause severe consequences. He said bitcoin has characteristics of what he calls a Ponzi scheme that's right out in the open. A Ponzi scheme is a type of fraud whereby crooks steal money from investors and mask the theft by funneling returns to clients from funds contributed by newer investors.Taleb had…

Read the original article here

IF YOU LIKED THIS ARTICLE CLICK SHARE