Bitcoin – A “tumor” created by 15 years of “Disneyland” economics

Bitcoin – A “tumor” created by 15 years of “Disneyland” economics

the Bitcoin triggers passions, both in the camp of its followers and in that of its opponents. And the latter are not lacking in imagination – and above all in bad faith – to sell the uselessness and danger of this emblematic cryptocurrency. An exercise in style to which we have just lent ourselves once again Nassim Nicholas Talebauthor of the bestselling book The Black Swan. This during a recent interview during which he compared Bitcoin to a “tumor”. Explanations…

the Bitcoin did not only make friends throughout its short existence. Because it has been just over 5000 days since this cryptocurrency has been officially online. But this period was obviously enough to see the emergence of fierce opponents of this current symbol of a decentralized and censorship-resistant economy. With as a rallying sign, the certainty that the BTC will eventually disappear with a loss and a crash. And, in the meantime, the repetition of attacks against him to make sure that this scenario happens…

A camp in which the author finds himself Nassim Nicholas Taleb. The latter known for having written the famous philosophical-economic essay The Black Swan in 2007. With the subtitle of this book “the power of the unpredictable” which he does not seem to want to apply to his doomsday predictions about Bitcoin. Because he considers this cryptocurrency as a simple “tumor” developed on the sick body of a 15-year-old “Disneyland” economy.

Bitcoin – “Tumor” of the “Disneyland” economy

Nassim Nicholas Taleb doesn’t mince words when it comes to criticizing Bitcoin. Could it be because of his poor experience with Coinbase customer service in 2020? Because in this case, his nervousness can be understood… and almost partially excused. Indeed, at that time he advised anyone who would listen to use cryptocurrencies to escape the economic crisis that hit Lebanon, where he is from. But obviously his view of things has changed in the meantime.

Because he has since become a fierce and vindictive opponent of Bitcoin. A position he recently confirmed during an interview given this Thursday during the show Squawk Box chain CNBC. All this strongly embellished with a good dose of “ok boomer” that will thrill the younger generations. Because, according to him, Millennials and GenZers — and anyone under 40 — “don’t know what the time value of money is”. Blame it on a global economic management qualified as a “Disneyland” type amusement park.

I think we had 15 years of Disneyland which fundamentally destroyed the economic structure. (…) You harm the economy… by creating tumors like Bitcoin. At one point there was a discount rate. All these notions escape the new generation. »

Nassim Nicholas Taleb

Bitcoin – A necessary “tumor”?

However, Nassim Nicholas Taleb’s reflection is not entirely meaningless. Because it is true that people born after 1971 will only have known the economic model based on what is called Bretton Woods II chords (the return). That is to say the historic decision of the President of the United States at the time, Nixon, to carry out a separation between the dollar and its effective value in gold. And, as a result, a relationship with money that would never be the same again. With, only a few years later, the equally historic cancellation of fixed exchange rates between currencies. This means, according to some economists, the starting point – and tipping point – towards the current apocalyptic situation.

So is Bitcoin a “tumor”? The question deserves to be asked, but taking the time not to give in to sterile hatred against this cryptocurrency. Because it may well be that in the end it is a necessary evil. A kind of collateral economic damage initiated by individuals eager to regain control. And this in order to oppose the determinism and monetary omnipotence imposed by force by banks and governments. And every attempt by regulators to try to get rid of it will only serve to make it grow a little more

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