Bitcoin Has Failed As A Currency And Is An Open Ponzi Scheme

Bitcoin has failed as a currency and is an open Ponzi scheme, according to the eminent writer, mathematician, statistician, scientist and author of the book "Black Swan" Nassim TALEB. In his recent tweets, he writes that the ideal crypto asset and currency is outside the control of a central authority, is capable of fast transactions, is reliable and serves as a store of value. However, the flagship cryptocurrency does not meet these attributes. Taleb also added that bitcoin works like a Ponzi scheme, a type of scam that makes a profit for earlier investors using the funds of later investors.

Taleb is known for his critical stance on the current financial industry, the monetary system and the recent financial crises. Initially, he was optimistic about bitcoin, but his recent statements show that he is now more critical of the digital asset. In February, Nassim Taleb tweeted that he was selling part of his bitcoins, indicating the reason – the high volatility of the coin.

Amid public excitement over Tesla accepting bitcoin as payment, Taleb warned of the company's terms and conditions for bitcoin payments. He said Tesla has a free refund option for customers. This means when bitcoin loses more value, the electric car maker will refund the payment to customers in bitcoin, but if bitcoin's value rises, the company will refund the payment in dollars.

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