Is Bitcoin Similar to a Pyramid Scam? That’s what the same economist who predicted the pandemic says

Each time that the world is more split between people who anticipate Bitcoin as a great investment, and those who don’t think even a bit within it. From the next category is that the economist Nassim Taleb, who compares the most popular cryptocurrency into a pyramid scam plot .

Of Lebanese source, Taleb is famed because of his 2007 publication’The Black Swan’, in which he called a possible pandemic, which is already occurring. The essayist and researcher gave his perspective on Bitcoin, also it is not encouraging in any way.

In less than 2 months, Bitcoin dropped about 26 percent of its worth , possibly its worst drop in the last calendar year. On April 14, the cryptocurrency reached a record historic price of $64,339 per unit.

Image: Behavior of Bitcoin from March 26 to April 26, 2021 based on data from CoinMarketCap.

Faced with this spectacular loss in value, Nassim Taleb ensured that Bitcoin is too volatile to be an effective currency and is not a safe protection against inflation.

‘Fundamentally, there is not any connection between inflation and bitcoin. None. I meanyou can have hyperinflation and Bitcoin going to zero. There is no link between the two,’ stated the economist in a meeting with CNBC.

The specialist in predicting possible catastrophes known as ‘black swans’, pointed out that Bitcoin has characteristics very similar to those of the Ponzi scheme, a kind of pyramid fraud by stealing cash from investors and disguising the scam from channeling returns.

‘Something that goes 5% every day, 20% in a month, up or down, cannot be a currency. It is something different,’ Taleb said, phoning Bitcoin that a ‘ trick’ plus a ‘ game’.

#Bitcoin and the $ USD.

– Bitcoin (@Bitcoin) April 26, 2021

Despite his present stance , the economist confessed that he was ‘originally tricked’ by Bitcoin. Thinking it might eventually become a productive money, it acquired a couple of units long ago, but said last February that it was ditching its cryptocurrencies on account of their volatility.

‘I purchased it… I was not willing to have a capital appreciation, however I wished to have an alternate to the fiat money issued by central banks: a money with no government. I understood that it was not a money without a government. It was pure speculation. It is like a match, (…) I suggest, you can make a game and call it money,’that he said.

‘If you wish to safeguard yourself against inflation, then purchase a piece of land. Grow, I don’t know, olives. In the event the cost collapses, you’ll have something,’Taleb added.

‘The ideal way for investors is to own things that can produce returns in the future. In other words, you may use actual dollars that come from the firm’, advocated the specialist.