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Having read Taleb’s Bitcoin Black Paper this guy’s words make total sense, and he puts it really well, very concise, unapologetic writing

• cinntaile 5y ago
  Taleb sure made a U-turn when volatility didn't decrease when the value increased as he would have expected.
  • 99_00 5y ago
    What do you think about the fact that he made a U-turn?
    • danuker 5y ago
      Before, he was a supporter: https://nassimtaleb.org/2013/03/nassim-taleb-on-bitcoin/ https://nassimtaleb.org/2013/03/nassim-taleb-on-bitcoin/ Recently, he said it is worth exactly $0, in the form of a paper no less: https://nassimtaleb.org/2021/06/bitcoin-currencies-bubbles/ https://nassimtaleb.org/2021/06/bitcoin-currencies-bubbles/ I will address one of his comments: > Comment 1: Why BTC is worth exactly 0 > Gold and other precious metals are largely maintenance free, do not degrade over an historical horizon, and do not require maintenance to refresh their physical properties over time. > Cryptocurrencies require a sustained amount of inter- est in them. I believe it's a good argument looking from afar. But Bitcoin's incentives are designed so that when it has low popularity, it requires fewer resources to get rewarded. This was crucial in the beginning. Initially, the block reward was great, but now it is smaller. However, the difficulty adjustment mechanism has not changed. A drop in mining difficulty will lead to more Bitcoin block rewards per kWh spent mining, making it more advantageous to mine and therefore cheaper to transact.