© Reuters Zero Interest Rates Creating Bubbles And ‘Tumors Like Bitcoin,’ Black Swan Author Is Doubling Down On $0 Price Target
Former Wall Street trader and author of “The Black Swan” has been a vocal critic of leading cryptocurrency (CRYPTO: BTC) for several years and didn’t hesitate to take more shots last week.
What Happened: Author and former options trader Nassim Taleb said many people don’t understand how the economy works thanks to the current interest rate environment of the Federal Reserve.
“I think that we’ve had 15 years – 14 and a half years – of Disneyland that basically has destroyed the economic structure. Think about it – no interest rates. So anyone who’s say 40 years old has no experience in markets,” Taleb said on CNBC’s “Squawk Box.”
Taleb said people under 40, which includes Millenials and GenZ, don’t know “what the time value of money is.”
Taleb argues that lowering interest rates too much could have a lasting impact on people and the economy.
“Zero interest rate for a long period of time, you are hurting the economy, you are creating a bubble, creating tumors like Bitcoin.”
Taleb sees the price of Bitcoin continuing to fall, with an eventual loose target price of $0.
“Bitcoin is still used, it’s still at $20,000. It’s not at, you know, at $1,000 or zero.”
Related Link: How To Buy Bitcoin
Why It’s Important: Taleb is the author of “The Black Swan,” a book that is based on the concept of…
