The price of Bitcoin has crashed after the news about the COVID-19 variant has hit the market. The investors who have placed their bets in Bitcoin are not sure how to deal with their claims that Bitcoin is the perfect hedge against inflation. One of the biggest critics of Bitcoin has taken this chance to rain down on the digital investors on social media.
Nassim Nicholas Taleb is a mathematician, philosopher, and author of the critically acclaimed novel called the Black Swan. Taleb recently took to Twitter to post his opinions and protest against the prevailing Bitcoin market. He posted that the people who still believe that Bitcoin is a good hedge against inflation should get out of the financial market.
Bitcoin Failed to Sustain Economic Pressure of Pandemic
The biggest selling point for Bitcoin for investors is its ability to offer a store of value against the money devaluation during difficult economic phases. However, Taleb seems to disagree with the idea and claim that the investors who are still using Bitcoin as a portfolio diversification option should switch to some other hobbies like stamp collection or bird watching.
He pointed out that during 2020, when the fuss over COVID scares hit the economy, Bitcoin prices fell by 50%. He claimed that many people keep using the term hedge against inflation without taking into consideration the facts. He further exclaimed that the current market crash is not the doing of the short position holders liquidating solely.
During the current market drop, Bitcoin crashed 22% from its ATH in the first week of the ongoing month. It is worth noting that the correction was worse than some of the airline corporations in comparison. Taleb is not the only person who has raised alarming questions about the flagship cryptocurrency.
Anthony Scaramucci, the author of the SkyBridge Capital recently gave an interview at the CNBC talk show. His company holds $1 billion in Bitcoin to provide exposure to different funds and financial vehicles. However, Scaramucci claimed that Bitcoin is not ready to provide a hedge against inflation at its current state and compared it to Amazon going through the development phase in 2000.