Book author calls Bitcoin a Ponzi Scheme, advises investors to grow olives, instead

Which is the best investment? Bitcoin? Or olives?

“Black Swan” author Nassim Taleb had some choice words for Bitcoin (BTC) when asked about the cryptocurrency in an interview with CNBC.

Citing excerpts from the interview, Blockchain.news quoted Taleb as saying: “Basically, there’s no connection between inflation and Bitcoin. None. I mean, you can have hyperinflation and Bitcoin going to zero. There’s no link between them.”

He criticized the virtual currency and called it a “gimmick,” which he described as too volatile to be an effective currency and not a safe hedge against inflation.

This was after the author was asked about crypto assets, focusing on Bitcoin as a growing number of investors have been restructuring their portfolios with the new asset class.

Like the Ponzi Scheme

Continuing in his response, the author also said that he sees Bitcoin as having the same characteristics as the Ponzi Scheme.

He even added that it is a cryptographic system with a beautiful setup and is well-made, but there is no reason for it to be linked to anything economic.

Taleb revealed that he once had favorable views towards the leading cryptocurrency but was fooled by it initially. He thought that it could be used as a currency. But when he saw how volatile its price was and investors are using crypto as a vehicle for speculation, he began selling off his Bitcoin and called it a failed currency.

Taleb says to grow olives

The bestselling 2007 book author had some pieces of advice to investors.

He said that those who want to go around the problems brought by inflation should buy a piece of land and invest something in it. He added that those investors that are worried about it (inflation) are better off buying properties rather than investing in Bitcoin.

“If you want to hedge against inflation, buy a piece of land. Grow, I don’t know, olives, on it. You’ll have olive oil. If the price collapses, you’ll have something,” he said.

 

Image courtesy of Tima Miroshnichenko/Pexels

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