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Nassim Nicholas Taleb, author of “The Black Swan,” has shared his view on Bitcoin during an interview with CNBC on Friday.
The mathematical statistician and risk analyst was asked about cryptocurrency, in particular Bitcoin. While he admitted that Bitcoin is “a beautifully set up cryptographic system,” Taleb believes that in order to hedge against inflation, one can best buy a piece of land because you can “grow olives on it and you’ll have olive oil.”
“Of course, the best strategy for investors is to own things that produce yields in the future,” he said.
On Bitcoin, Taleb said that although it is well-made, “there is absolutely no reason it should be linked to anything economic.”
He further claimed Bitcoin “has the characteristics of an open Ponzi scheme” and that everyone knows this.
“Basically, there is no connection between inflation and bitcoin. None. You can have hyperinflation and bitcoin goes to zero. There is no link between them,” continued.
He concluded the interview saying:
“Stay out of bitcoin. Buy stocks that are stable and buy things you understand.”
Taleb used to be a proponent of the number one cryptocurrency. However, once he saw its volatility and the currency being used for speculation, the author changed his views.
Taleb’s investment advice to leave Bitcoin for what it is and venture into ‘olive oil’ has so far caused great laughter on Twitter where it is proudly being shared.
Of course, the self proclaimed ‘King of Bedford’ and host of the ‘What Bitcoin Did’ podcast, was in on the fun: