The author of Black Swan criticized bitcoin because of the US’s loyal policy towards cryptocurrencies

Philosopher and author of the iconic work «The Black Swan» Nassim Taleb said that the flexible financial and credit policy of the US Federal Reserve System (Fed) has led to the emergence of «tumors» like bitcoin.

«I think we’ve had 15 years of Disneyland, which has basically destroyed the economic structure. TheFed missed the mark by cutting interest rates too much,» the writer said.

«I think that we’ve had 15 years of Disneyland that basically has destroyed the economic structure,» says @nntaleb. «You are hurting the economy. creating tumors like #bitcoin. There was at some point such a thing as a discount rate. All these notions escape the new generation.» pic.twitter.com/gebbrcws7I

— Squawk Box (@SquawkCNBC) September 15, 2022

According to Taleb, the $ 20,000 bitcoin rate is a sign that some things in financial policy need to be fixed. The philosopher explained that cryptocurrencies began to flourish during the era of low interest rates. Bitcoin launched shortly after the Fed cut rates to almost zero to stimulate the economy after the global crisis. All this time, BTC existed at the expense of the «trough» until 2022, when the Fed began an aggressive policy of raising interest rates.

According to Taleb, this approach makes people under the age of 40 not understand how the economy works. As a result, society will have to face the consequences. The writer addressed the Fed: «Zero interest rates over a long period of time are damaging to the economy. You create bubbles, you create tumors like bitcoin.»

Taleb called on the US government and Americans themselves to return to «normal economic life.» In the spring of 2022, the author of the bestselling book Black Swan suggested that the crisis in the crypto asset market could drag on and eventually become an «ice age» for the cryptocurrency market. At the same time, Taleb voiced a thesis about the possible collapse of non-fungible tokens (NFTs). He stated that an increase in interest rates as a result of the US Federal Reserve tightening its fiscal and credit policies would cause the entire NFT sector to collapse. «All it takes is a higher interest rate to make things that don’t make sense really stop making sense,» Taleb said.