Just a few years ago, Taleb was into the world of cryptocurrencies and owned a few himself. A few months later, he complained about Coinbase’s customer support on Twitter and later closed his Coinbase account.
For the author of The Black Swan, anyone under the age of 40 -Millennials and GenZ- does not understand how the economy works due to the environment of federal interest rates in which they have grown up.
“I think we’ve had 15 years – 14 1/2 years – of Disneyland that has basically destroyed the economic fabric,” Taleb said. “Think about it: no interest rates. So anyone who is, say, 40 years old […] He has no experience in the markets. Zero. They don’t know what the time value of money is.”
Taleb is the author of the best-selling book “The Black Swan,” a book that explores luck, risk, uncertainty, and probability. It is based on the concept of a “black swan event,” which is unpredictable, has massive impact, and is rationalized after the fact to be less random and more predictable.
In his interview on Thursday, Taleb argued that the US federal government lowered interest rates too much, and eventually society will have to face the consequences.
“A zero interest rate for a long period of time, it’s hurting the economy, it’s creating bubbles, it’s creating tumors like Bitcoin,” Taleb said.
In February 2021, Taleb declared Bitcoin a “failure” due to its volatility and said that he was selling his Bitcoin. In April of last year, he followed it up by stating that Bitcoin “has characteristics of an open Ponzi.”
Although Taleb now urges society to “return to normal economic life”, he also argued that “we are still far from stress factors.” “Bitcoin is still used, it’s still at $20,000. It’s not, you know, at $1,000 or zero.”finished.
Source: Ambito
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