Is the bitcoin worth ZERO??
Is the bitcoin worth ZERO?
There is an article by Nassim Nicholas Taleb who is a distinguished Professor of Risk Engineering at NYU’s Tandon School of Engineering.
Taleb has applied quantitative finance concepts and economic arguments to cryptocurrencies and argues that bitcoin fails to satisfy the notion of ‘currency without government’.
As per Taleb:
Cryptocurrency can be neither a short or long term store of value – its expected value is no higher than 0 (yes you got it right ZERO).
It cannot operate as a reliable inflation hedge.
It does not constitute a tail protection vehicle for catastrophic episodes.
Taleb states the principle of “Cumulative ruin”as “If any non-dividend yielding asset has the tiniest probability of hitting an absorbing barrier, then its present value must be 0”(excluding collectibles and jewellery side of gold).
An excellent read “Bitcoin Currencies and Bubbles” by Nassim Taleb