Bitcoin Critic “Black Swan” Author Praises Gold as Central Banks Stacking It

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As a seasoned analyst with extensive experience in financial markets, I find Nassim Nicholas Taleb’s recent comments on Bitcoin and gold intriguing. His deep understanding of risk management and his knack for identifying black swan events make him an authority in our field.

Noted intellectual, risk analyst, and bestselling author, Nassim Nicholas Taleb (known for works like “Black Swan”, “Antifragile”, and “Skin in the Game”), has recently voiced his appreciation for Bitcoin‘s counterpart in the real world – gold – on his account on the X social media platform.

He also drew his followers’ attention to the real “de-dollarization” taking place around the world. Meanwhile, Taleb continues to criticize the world’s flagship cryptocurrency Bitcoin.

Taleb speaks of “de-dollarization”, praising gold

Nassim Taleb recently spoke to his group of supporters to highlight an often overlooked reality: a significant “shift away from the U.S. dollar” is occurring globally. This process, while substantial, tends to escape the notice of the average individual.

He clarified that this process is not about trade settlements, because these transactions are still labelled in US dollars as an “anchor currency.” However, Taleb mentioned an important detail. He said that despite settling transactions in US dollars, central banks, especially those in the BRICS countries – Brazil, Russia, India, China, and South Africa, have been storing gold. These banks have been putting their free reserves into this risk-off asset.

Additionally, he took note with pride that the price of gold increased by nearly 30% compared to the same time last year. From $2,043 on January 1st, the spot gold price climbed up to $2,508 on September 10th.

Many individuals may not fully grasp the ongoing “shift away from the dollar,” often referred to as “de-dollarization.” This process isn’t primarily about trade settlements.

— Nassim Nicholas Taleb (@nntaleb) September 11, 2024

Taleb remains Bitcoin denier

Nassim Taleb, who once championed Bitcoin, has since become a critic of it. Back then, five years ago, he saw Bitcoin as an ideal replacement for traditional money (fiat money), especially when the financial revolution in his home country Lebanon, referred to as the WhatsApp Revolution, occurred and banks refused to dispense cash to their customers.

In 2020, he made a change, expressing his dissatisfaction with Bitcoin because of its excessive price fluctuations. Since then, he has openly labeled Bitcoin as a “cancerous growth” within the economy, frequently voicing his criticism against it.

Recently, author Nassim Nicholas Taleb has hinted at a new book currently in progress. Titled “The Lydian Stone” or the “touchstone,” this book is named after an ancient flint stone historically used to test the purity of precious metals. As Taleb explains, the book will explore “the ways humans can be deceived by sequences” and will relate to concepts such as the flow of time and entropy.

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2024-09-11 16:08