At press time, bitcoin isn’t doing so hot. The number one cryptocurrency by market cap is down for the count and trading in the $6,000 range.
Bitcoin Still Has Loyalists
And yet, much like gold and other precious metals, the digital asset can’t seem to shake its followers, some of whom hold rather prominent positions in the world of finance. One such follower is 59-year-old Nassim Nicholas Taleb, the author of bestselling books like “The Black Swan” and “Fooled by Randomness.”
Taleb says he’s very confident in bitcoin, particularly technology behind it. Mirroring comments mentioned by Chinese president Xi Jinping earlier this year, Taleb claims that blockchain is a powerful tool that can help revitalize the global economy. In a recent interview, he states:
You cannot ignore the cryptocurrencies, particularly the bitcoin story and blockchain.
Taleb, who hails from Lebanon and now calls America home, claims that many governments – like those of the U.S. and his home country – simply don’t have enough faith in what cryptocurrencies and blockchain can do. He’s also very confident that people don’t trust traditional financial systems the way they did prior to the 2008 Great Recession and the fall of many of the world’s major banks. He believes crypto can enhance the financial space in ways regulators have never even dreamed.
I am realizing Lebanon is in a situation where there is an implied currency control, but the government cannot control bitcoin, which is a good thing because people have no trust and the ability of the central bank which really causes the Ponzi style collapse and the bitcoin does not have that.
Taleb reiterates what many of us have already come to know and believe about crypto: that the government has no place in the industry. Digital currencies do not operate the way traditional fiat monies do. These currencies are issued by central banks through permissions granted by state and federal governments. In other words, they are controlled at every step.
Bitcoin and altcoins, however, are built to give financial power back to the people. Crypto does not perform credit checks, for example. Lagging or poor credit is likely to put a person in a financial rut in that they will be ineligible to garner the tools and assistance they need to make everyday purchases.
Crypto, on the other hand, doesn’t care about someone’s past. It can be used by anyone at any time granted they have enough technical know-how to perform digital or online transactions.
Crypto Is a Solid Tool
Taleb further comments:
I am very glad that we have cryptocurrencies… Of course, you are going to have frauds and Ponzi schemes and all that with bitcoin and cryptos, but when you see governments like in Lebanon doing the Ponzi [schemes], you tell yourself which is better.