“Bitcoin is an Excellent Idea” Says Nassim Taleb – Trustnodes

“Bitcoin is an Excellent Idea” Says Nassim Taleb

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“All central banks operated under the same model, making it a perfect monoculture,” says Nassim Taleb, whose hedge fund saw 65%-115% gains during the 2008 banking collapse. He further adds:

“In the complex domain, expertise doesn’t concentrate: under organic reality, things work in a distributed way, as Hayek has convincingly demonstrated.”

Hayek came up with an insight during the last century which inspired the intellectual foundations of digital currencies. Stating that the regulator of the free market, money, must itself be regulated by the free market, because only those most affected and closest to the consequences of their decision can make the best decisions.

While central banking committees can not possibly take into account all the things that must be taken into account, leading to constant monetary mismanagement. As we saw before the banking collapse and perhaps as we have seen since with the endless money printing.

“Which is why Bitcoin is an excellent idea,” Taleb says before further adding: “It fulfills the needs of the complex system, not because it is a cryptocurrency, but precisely because it has no owner, no authority that can decide on its fate. It is owned by the crowd, its users. And it has now a track record of several years, enough for it to be an animal in its own right.”

As digital currencies are peer to peer, open source, and global, no man or group can control them because one can just fork the currency, like Bitcoin Cash did in August, so allowing the market to freely choose and decide what they like best.

“Its mere existence is an insurance policy that will remind governments that the last object establishment could control, namely, the currency, is no longer their monopoly,” Taleb says.

The piece was publicly published shortly after he tweeted out a scathing criticism of what he calls, in effect, an out of touch elite with no skin in the game.

What we have been seeing worldwide, from India to the UK to the US, is the rebellion against the inner circle of no-skin-in-the-game policymaking “clerks” and journalists-insiders, that class of paternalistic semi-intellectual experts with some Ivy league, Oxford-Cambridge, or similar label-driven education who are telling the rest of us 1) what to do, 2) what to eat, 3) how to speak, 4) how to think… and 5) who to vote for,” he thunders, with the piece interestingly written before Trump was elected, but seemingly not before Brexit.

The sequence of publicizing might suggest Taleb thinks crypto is a continuation of that public rebellion, with bitcoin specifically going mainstream in 2017.

 

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