Bitcoin is debated. Nassim Nicholas Taleb retains his release. He describes Bitcoin as “technological tulip”. His acerbic ticket leaves no one indifferent. Thus, let's dive into the heart of his attack to understand his reproaches.
In short
- Nassim Taleb compares Bitcoin to a speculative bubble, calling it “technological tulip”.
- He criticizes his volatility, his lack of real monetary utility and his ineffectiveness as a refuge value.
- Despite this, Bitcoin remains carried by its decentralization, its rarity and an increasing adoption.
Technological tulip?
Nassim Nicholas Taleb does not mince his words. In his latest article, he accuses Bitcoin of having no economic need.
For him, the BTC follows a fashion rather than real utility. He readily compares the phenomenon to the bubble of the 18th century tulips. Thus, he suggests that the value falls as soon as the craze fades.
For Taleb, Bitcoin lacks monetary basis. He deplores the lack of state recognition as a means of payment.
According to him, the course would approach zero outside speculation. He judges that states have never embraced this asset to pay invoices. Consequently, the crypto would be confined to a simple object of financial bet.
Finally, it points to the extreme volatility of Bitcoin. He evokes brutal oscillations, more than 50 % in a few days.
For him, this instability excludes any coverage against a systemic Krach. He reject the idea of a refuge. Besides, he nicknamed it “foolish detector” during a previous post.
However, beyond these indictments, it is necessary to explore what really turns Bitcoin.
Beyond criticism: which really makes Bitcoin work
Decentralization remains the cornerstone of Bitcoin. Each node of the network validates transactions without going through a single authority. Confidence is therefore based on algorithm and not on a third party. Thus, participants rely on coded rules. This model breaks traditional monopolies.
Security is based on the proof – of working. Minors devote huge energy resources to dig has. This competition makes costly falsification to the extreme. Therefore, no one can alter the chain without devoting prohibitive means to it. Finally, the Bitcoin reward encourages to maintain the honesty of the network.
The programmed rarity reinforces the attractiveness of Bitcoin. The protocol limits the issue to 21 million tokens.
Successive halvings intensify the shortage effect. Thus, Bitcoin is positioned in reserve of value in the face of inflation. Moreover, adoption extends, between investors and concrete uses. The world observes.
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