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"Black Swan" Author Dismantles Key Bitcoin Narrative

Bitcoin

u.today 17 June 2022 16:10, UTC
  
Reading time: ~2 m

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

When confronted about Bitcoin's disastrous performance, Bitcoiners typically claim that the cryptocurrency's returns are still massive if you zoom out far enough.

MicroStrategy CEO Michael Saylor, whose company has already lost roughly $1 billion on its audacious Bitcoin bet, recently reiterated the popular talking point during a CNBC interview.

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

BTC

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

As noted by Taleb, the average purchase price for other major assets is much lower than their current market price.

The best-selling author does not mince words when it comes to Bitcoin and its supporters. Earlier this week, Taleb said that the world's largest cryptocurrency was "an intelligence test," gloating over its sudden collapse.

He further mentioned that the fact that MicroStrategy holds $410 million worth of Bitcoin in a custody account flies in the face of "stupid," "naive" and "conspiratorial" people who bought into the "trustless" narrative.

Last month, as reported by U.Today, Kwon opined that Terra's Do Kwon was more dangerous that the late fraudster Bernie Madoff.


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