TR;DR Breakdown:
- Nassim Taleb slams Bitcoin, says it is impossible to use BTC to price goods.
- Analysts say Bitcoin has failed because it is not a reliable means of payment.
The infamous author of “Black Swan” and renowned scholar Nassim Taleb took to Twitter to voice his discontentment about Bitcoin’s failure as a cryptocurrency. The Lebanese-American stated that he had cleared all his Bitcoin holdings.
However, the reason behind his claims about Bitcoin’s failure was due to the recent price volatility of the cryptocurrency. He stated that it is unusual for a cryptocurrency to show increased volatility that the amount it was purchased or sold with it. He also added that it is impossible to use Bitcoin to price goods.
Even as the price of Bitcoin is recording huge gains, surging above 64 percent since the beginning of the year, the author of Black Swan is still critical about the top coin. He branded Bitcoin a “failure” despite its bullish trend.
Bitcoin’s failure: Analysts skeptical about the future of BTC
Bitcoin’s failure is a measure of its inability to act as a feasible payment option, according to analysts. As the cryptocurrency continues to increase in value, investors and holders of the cryptocurrency tend to hold their coins instead of using it.
Analysts believe that many investors who used up their Bitcoins a few years back will have every reason to regret it. According to them, it is a significant aspect of Bitcoin’s failure as customers, traders and investors do not know what will happen next. They may either lose their money or make huge returns due to the price uncertainty of the most valued cryptocurrency.
Although some prominent crypto investors like Michael Saylor see Bitcoin as a store of value rather than a payment method, Nassim Taleb considers the cryptocurrency to be a failed project. Analysts explanations about Bitcoin’s failure as a cryptocurrency is acceptable, but the use of BTC as a store of value seems to be widely adopted by many investors worldwide.