- Nassim Nicholas Taleb said that Millennials and GenZ don’t understand the economy.
- Taleb warned of the Federal Reserve’s decision to reduce interest rates.
Bitcoin is a “tumor,” according to former crypto supporter turned critic Nassim Nicholas Taleb. On Thursday’s episode of CNBC’s Squawk Box, author of The Black Swan Nassim Nicholas Taleb said that Millennials and GenZ don’t understand the economy since they grew up in an age of low-interest rates from the Federal Reserve.
Taleb said:
“I think that we’ve had 15 years—14 and a half years—of Disneyland that basically has destroyed the economic structure. Think about it—no interest rates. So anyone who’s say 40 years old […] has no experience in markets. Zero. They don’t know what the time value of money is.”
Advocate Turned Critic
The Black Swan, Taleb’s best-seller, delves into concepts like chance, danger, doubt, and probability. It’s based on the idea of a “black swan event,” an unexpected but very significant occurrence that may be explained away as something less random and more predictable in retrospect.
In an interview published on Thursday, Taleb warned that the implications of the Federal Reserve’s decision to drastically reduce interest rates will be felt by society in the long run.
Taleb further stated:
“Zero interest rate for a long period of time, you are hurting the economy, you are creating bubbles, creating tumors like Bitcoin.”
Some years ago, Taleb was interested in and even owned cryptocurrency. Way back in April of 2020, he advised the people of Lebanon to “use cryptocurrencies!” But later Taleb called Bitcoin a “failure” in February 2021 due to its volatility and said he was liquidating his Bitcoin holdings. He furthered his slide towards no crypto in April of last year when he said Bitcoin “has characteristics of an open Ponzi.”
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