Nassim Nicholas Taleb, the Lebanese-American finance author, has thrown cold water on Bitcoin's status as a hedge against market crashes. The world's largest cryptocurrency isn't cutting it, he says.
Taleb's views clash with those who see Bitcoin as a store of value. He's not mincing words. And he obviously means to convey a message, totally contradicting with what Bitcoin maximalists, like Michael Saylor, say. No, Bitcoin is not capable of becoming the 'new gold' in any sort, shape or form.
"It's not a hedge against assets melting," Taleb declared on CNBC's Squawk Box.
Taleb is known for his crypto skepticism and sharp remarks against Bitcoin, but this one something really harsh, even bu Taleb's high standards.
Bitcoin's recent 20% nosedive backs his point. The crash followed Mt. Gox's distribution plans and German government sell-offs.
Now, Bitcoin's feeling the heat from Japan's stock market woes and regulatory pressures. It's trading at $57,333, down 13.09% in a week, per CoinMarketCap.
Taleb's not impressed. He compared Bitcoin to gold, and Bitcoin came up short.
"A gold chain left on the ground for 10,000 years would still have value," he said. Bitcoin lacks this staying power, in his view.
The author didn't stop there. He called Bitcoin a "crazy asset" driven by "crazy people."
Taleb's not totally anti-Bitcoin. He's invested in it. But he's not singing its praises.
"It's useless," he stated bluntly. An asset that jumps from $10 to $60,000 isn't great for price stability, he reckons.
Taleb's take is clear: Bitcoin's got a long way to go before it's a true safe haven. The crypto crowd might not like it, but he's sticking to his guns.