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Here’s Why Cryptocurrency Is In Crisis According To “Black Swan” Author

Cryptocurrency has gone from being the hottest new thing to experiencing a complete catastrophe. Whether their bitcoin, dogecoin, and other tokens are safe should be the first thing crypto owners should be asking themselves right now. If you hold them with the incorrect broker or custodian, they could disappear into a protracted bankruptcy procedure and possibly never reappear.

Author of “Black Swan,” Nassim Nicholas Taleb, refuted the notion that the cryptocurrency market is experiencing a liquidity crisis in a recent Twitter discussion.

The Lebanese-American scholar contends that while cryptocurrency is currently experiencing a crisis, it is actually because of a shortage of financial flow. He contends that as long as the business can make money, the market price is unimportant.

Cryptocurrency hasn’t succeeded in creating something “remotely usable” in order to generate cash flow, despite all the hype.

According to Taleb, the revenue is circular with some suckers in the middle. Because Bitcoin doesn’t produce earnings or cash flows for its buyers, some skeptics think that cryptocurrency is only supported by speculative activity.

Bill Gates’s Opinion On Cryptocurrency

Bill Gates, a co-founder of Microsoft, recently asserted that non-fungible tokens are an investment that falls victim to the “greater fool argument.”

Gates said that those who spent a lot of money on monkey artwork would be able to change the world for the better.

The latest market correction has caused the NFT bubble to inevitably bust, with the floor price for a Bored Ape Yacht Club lately falling to its lowest level since last August. Within just two months, entry costs have dropped by approximately 80%, leaving investors who paid considerably more to purchase the hot NFT stocks in the dust.

The value of other well-known NFT collections, such as e CryptoPunks, has also fallen.

Even while NFTs have had a lot of celebrity endorsements, some well-known figures decided to reject them at the height of their appeal. For instance, Canadian actor Keanu Reeves thought it was absurd to spend a lot of money on pieces of art that could be readily copied.

Given that Gates has long criticized cryptocurrencies, his pessimism shouldn’t come as a surprise. The billionaire allegedly stated in May 2018 that he would be open to short Bitcoin. Given that he lamented cryptocurrencies’ lack of intrinsic worth in a Reddit post, it appears that Gates hasn’t warmed up to them.

Despite being a bear, Gates insists he hasn’t shorted Bitcoin.

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