“Black Swan” author has named the real reason behind the devastating cryptocurrency crisis

In a recent Twitter thread, “Black Swan” author Nassim Nicholas Taleb has rejected the idea that the cryptocurrency industry is in the middle of a liquidity crisis.

The Lebanese-born American economist states that crypto is indeed in the middle of a crisis, but it is actually due to the lack of cash flow.

He argues that the market price is not a big deal if the company is capable of generating cash.

Despite all the hype, crypto hasn’t managed to produce anything “remotely useful” in order to generate cash flow.

Taleb says that the income is circular, with some suckers being in between.
Bitcoin doesn’t generate profits or cash flows for its buyers, which is why some skeptics believe that cryptocurrencies are purely driven by speculation. As reported by U.Today, Microsoft CEO Bill Gates said that cryptocurrencies were 100% based on the “greater fool theory.”

Berkshire Hathaway CEO Warren Buffett famously called Bitcoin “rat poison squared” while claiming that he wouldn’t buy all Bitcoins in existence for just 25%. Buffett famously has a preference for companies that are capable of generating healthy and consistent cash flows.

As reported by U.Today, Taleb said Bitcoin was “a perfect sucker game” during a prolonged period of low interest rates.

However, the Fed’s hawkish monetary policy has delivered a devastating blow to the largest cryptocurrency. It is now down 76.25% from its record peak.

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