Is Bitcoin Similar to a Pyramid Scam? So says the same economist who predicted the pandemic

Each time the world becomes more divided between those who trust him Bitcoin as a good investment, and those who don’t believe in it a bit. In the second group is the economist Nassim Talebwho compares with Cryptocurrency most popular with one Pyramid Fraud Scheme.

Taleb is of Lebanese origin and famous for his book ‘The Black Swan’ 2007 where he predicted a possible pandemic that is already happening. Now the essayist and researcher also gave his point of view Bitcoinand it’s not encouraging at all.

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Is Bitcoin Similar to a Pyramid Scam?  So says the same economist who predicted the pandemic
Is Bitcoin Similar to a Pyramid Scam? So says the same economist who predicted the pandemic

In less than 2 weeks the Bitcoin lost roughly 26% of its value, perhaps the worst drop in the last year. On April 14th, the cryptocurrency hit an all-time high of $ 64,339 per unit. However, this Sunday, April 25th fell to $ 47,777according to data from CoinMarketCap.

Image: Bitcoin’s behavior from March 26th to April 26th, 2021 according to data from CoinMarketCap.

In view of this resounding loss of value Nassim Taleb assures that the Bitcoin It’s too volatile to be an effective currency, and it’s not a safe hedge against inflation.

“Basically there is no connection between inflation and Bitcoin. None. I mean, you can have hyperinflation and Bitcoin go to zero. There is no connection between the two “said the economist in an interview with CNBC.

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The potential catastrophe prediction specialist known as “black swans” pointed out that the Bitcoin has properties similar to Ponzi scheme, kind of Pyramid fraud by stealing money from investors and covering up the scam by channeling the returns.

“Something that moves up or down 5% a day, 20% in a month cannot be currency. It is something different “said Taleb and called Bitcoin “Trick” and a “play”.

Despite his current stance, the economist admitted that the Bitcoin it “Initially cheated”. Thinking that it might eventually become a currency, it bought some units a long time ago but said last February that it would get rid of its currency Cryptocurrencies due to its volatility.

“I bought it … I wasn’t ready to make capital appreciation, but I wanted an alternative to the fiat currency issued by the central banks: a currency without a government. I realized it wasn’t a currency without a government. It was pure speculation. It’s like a game, (…) I mean, you can make a game and call it currency “he told.

“If you want to protect yourself from inflation, buy a piece of land. Grow, I don’t know, olives. You will have olive oil. When the price collapses you have something “Taleb added.

“The best strategy for investors is to own things that will bring returns in the future. In other words, you can use real dollars that come from the company. “the specialist recommended.

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