Bitcoin price is trading near $50,000 and the uptrend appears to be just now getting under way. So why then, is the author of the Black Swan, Nassim Nicholas Taleb choosing now to sell his BTC? His credentials also include options trader, mathematician and risk analyst. Is his warning something investors should seriously heed – or has he got it all wrong this time?
Black Swan Author Blasts Crypto Investors, Begins Selling Bitcoin
Nassim Nicholas Taleb upset the cryptocurrency community today when the Black Swan author revealed that he’s been “getting rid of” his BTC recently. According to Wikipedia, Taleb “is a Lebanese-American essayist, scholar, mathematical statistician, and former option trader and risk analyst, whose work concerns problems of randomness, probability, and uncertainty.”
If anyone is qualified to comment on Bitcoin, it is this man. However, his reasoning for why he’s dumping his coins doesn’t quite stack up. So why then is a cryptocurrency considered an “insurance policy against uncertainty,” triggering the risk analyst so much suddenly after being invested for some time? And why do it now when Bitcoin is trading at nearly $50,000?
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Because he can’t buy good and services with it. According to Taleb, a “currency is never supposed to be more volatile” than what can be bought with it. In that respect, he says, Bitcoin has “failed.”
Taleb has had some choice words for the crypto community at large in the past, calling Bitcoiners “total idiots.” Today, he doubled down claiming that the cryptocurrency has now been taken over by “Covid denying sociopaths with the sophistication of amoebas.”
Why choose now to sell Bitcoin based on its volatility? | Source: BTCUSD on TradingView.com
Could Nassim Nicholas Taleb Be Selling The Coin Short?
Taleb certainly has the credentials, but fails to see just how sophisticated Bitcoin’s design has been. Cory Klippsten, CEO of SwanBitcoinm, who named his company after Taleb’s book, attempted to clear the air around where Bitcoin adoption currently is headed.
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Klippsten outlines that the natural progression of adoption starts at store of value, moves into medium of exchange, and later becomes a unit of account. With the cryptocurrency still mid-way into its store of value phase, that value has plenty of room to climb.
As adoption takes place and the medium is exchanged more and more, the volatility that’s sending Taleb’s risk meter off the charts currently will eventually wane. At that stage, Bitcoin can become a more stable unit of account.
Featured image from Deposit Photos, Charts from TradingView.com
Price analysis 3/3: BTC, ETH, ADA, BNB, DOT, XRP, LTC, LINK, BCH, XLM
Evolve Fund Files for Ethereum ETF after Bitcoin Approval in Canada
Just weeks after opening a Bitcoin (BTC) exchange-traded fund, Evolve Fund has opted to file for a similar ETF product based on Ethereum (ETH). With $1.7 billion assets under management, Evolve is a Canadian-based ETF provider that specializes in “bringing disruptive innovation ETFs to Canadian investors.”
Just a month prior, Evolve Funds scored an approval from the Canadian government to proceed with listing their Bitcoin ETF on the Toronto Stock Exchange. Found under ticker EBIT.TO, the fund is down approximately 15% since its listing date.
“As a leader in disruptive innovation, we look forward to providing Canadian investors with access to another leading cryptocurrency through an ETF structure,” said Raj Lala, President and CEO at Evolve Fund. As Ethereum is the second biggest cryptocurrency by market cap, the digital asset has enjoyed similar levels of attention to Bitcoin from financial institutions.
Moreover, the Ethereum-based ETF would give potential investors exposure to the daily movements of Ether. Thanks to the “creation and redemption” processes offered by ETF structures, there would be minimal tracking errors between spot price and the ETF. Its portfolio will be based on ETHUSD_RR, a daily benchmark index price for Ethereum denominated in U.S. dollars.
The proposed fund would work similarly to its pre-existing Bitcoin counterpart. If approved, both ETFs would contract Cidel Trust Company and Gemini as their custodian and sub-custodian. This means that these two firms will hold client’s securities in electronic form, most likely through digital wallets.
Institutional Interest in Crypto, From Bitcoin to Ethereum, Continues to Grow
There is no doubt that institutions will continue to bring crypto-based investment products to the traditional financial markets. Just days ago, Goldman Sachs, one of the largest investment banks in America, reopened its Bitcoin-futures trading desk.
As public demand soars and financial institutions rush to join in, the future of cryptos looks brighter than ever.
Featured Image from Unsplash
You can now buy a used Hyundai, not just a Lambo, with Bitcoin
Cointelegraph By Sam Bourgi
HGreg, a Quebec-based vehicle superstore with 30 North American locations, will begin accepting cryptocurrency payments for new or preowned vehicles this month.
The auto dealer, which has locations in Quebec and Florida, is becoming one of the first large automotive groups to accept digital asset payments in its day-to-day operations. The company claims to have sold 500,000 vehicles over the past 25 years and maintains a warehouse in Miami that’s stocked with over 1,000 cars.
“A portion of the revenue from sales made in cryptocurrency will be kept in this format by the company,” HGreg said, indicating that it plans to hold digital assets like Bitcoin (BTC) on its balance sheet.
In terms of accepting crypto payments, the dealership said:
“We’re pleased today to be at the forefront of technology, giving our customers another payment option. We also believe it will be advantageous to keep some of our assets in cryptocurrency.”
The dealership sells a wide variety of used cars, from Hyundais to Lamborghinis. Crypto users can therefore use their funds to buy practical cars in addition to luxury vehicles. HGreg claims to have the largest inventory of vehicles in Canada.
HGreg’s decision to accept cryptocurrency payments comes on the heels of Tesla’s entry into the Bitcoin market. As Cointelegraph reported last month, the electric vehicle maker allocated 7.7% of its gross cash position to Bitcoin. In the process, the company announced it will begin accepting BTC for payment.
While cryptocurrencies remain largely within the domain of investments, payment infrastructure is increasingly integrating digital assets. OLB Group recently enabled crypto payments for thousands of United States merchants, allowing businesses to accept Bitcoin, Ether (ETH), USD Coin (USDC) and Dai.
A car enthusiast who spent 37 BTC on two used Hondas in 2017 might wish he had waited…
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