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‘Black Swan’ author Nassim Taleb says bitcoin is worth zero and fails as a currency and a hedge
  • Nassim Nicholas Taleb said in a recent paper that bitcoin has failed as a currency without government, as a hedge against inflation and as a safe haven investment.
  • The author of “The Black Swan” reversed his previous stance, in which he once called bitcoin “insurance” against government control over money.

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Nassim Nicholas Taleb has reversed his stance on bitcoin.


The author of “The Black Swan” said in a recent paper that the largest cryptocurrency by market cap has failed to satisfy the notions of it as a currency without government, as a hedge against inflation and as a safe haven investment.

“Few assets in financial history have been more fragile than bitcoin,” he said.

Taleb had previously spoken more favorably on bitcoin, particularly on its potential to help people circumvent capital controls in markets that rely on them to manage their exchange rates. He called it “the first organic currency” in the foreword of “The Bitcoin Standard” in 2018 and “an insurance policy” against government control over currency.

In his recent paper, “Bitcoin, Currencies, and Fragility,” published in late June, Taleb, a probability researcher and former longtime quantitative trader, says bitcoin is worth “exactly zero” partly because it requires a sustained amount of interest to maintain it.

By contrast, “gold and other precious metals are largely maintenance free, do not degrade over an historical horizon, and do not require maintenance to refresh their physical properties over time,” he said.

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