‘Black Swan’ author Nassim Nicholas Taleb has named the real reason for the devastating cryptocurrency crisis
In a recent Twitter feed“Black Swan” author Nassim Nicholas Taleb has dismissed the idea that the cryptocurrency industry is in the midst of a liquidity crunch.
The Lebanese-American intellectual argues that the crypto is indeed in the midst of a crisis, but it is actually due to the lack of cash.
He argues that the market price is not a big issue as long as the company is able to generate cash.
Despite all the hype, the crypto has failed to produce anything “remotely useful” to generate cash flow.
Taleb says income is circular, with a few suckers in between.
Bitcoin does not generate profits or cash flow for its buyers, which is why some skeptics believe cryptocurrencies are purely driven by speculation. As reported by U.TodayMicrosoft CEO Bill Gates has said that cryptocurrencies are based 100% on the “biggest fool theory”.
Berkshire Hathaway CEO Warren Buffett has called bitcoin a “squared rat’s death” while saying he won’t buy all bitcoin in existence for just 25%. Buffett has a notorious preference for companies that can generate healthy and consistent cash flow.
As reported by U.Today, Taleb said Bitcoin was “a perfect sucker game” during a prolonged period of low interest rates.
However, the Federal Reserve’s hawkish monetary policy has dealt a devastating blow to the biggest cryptocurrency. It is now down 76.25% from its record high.