The philosopher and author of the cult work ‘The Black Swan’, Nassim Taleb, said that regulatory uncertainty in the cryptocurrency market creates fertile ground for civil lawsuits.
Bitcoin will be a gold mine for lawyers.
When regulations are fuzzy, there is a lot of room for civil suits, as with the junk bond debacle (in addition to criminal ones, e.g. Milken).
If you bought cryptos based on an EXPLICIT recommendation, make sure you have the screenshots.— Nassim Nicholas Taleb (@nntaleb) June 15, 2022
“Bitcoin will be a gold mine for lawyers. When regulation is fuzzy, there are many opportunities for civil lawsuits, as in the case of the junk-bond crash (in addition to criminal ones, for example, Milken). If you bought cryptocurrency based on an explicit recommendation, make sure you have a screenshot,” Taleb wrote.
He also noted that he regards Bitcoin as an “intelligence test.” In his words, the point of blockchain technology is to remove third parties from financial interactions, such as custodial services. However, big holders of crypto like MicroStrategy use custodial accounts, the philosopher explained.
Bitcoin is an intelligence test.
Bitcoin/blockchain’s rationale, which makes it attractive to pple conspiratorial yet stupid & naive, is to escape the custodian/trust system.
Yet [MicroTravesty] $MSTR claims it “has at least $410 million worth of Bitcoin in a custody account.”— Nassim Nicholas Taleb (@nntaleb) June 15, 2022
In the comments on the post, it was noted that Michael Saylor’s company keeps only 15% of its assets in a custody account. Taleb replied that to finance MicroStrategy’s activities it uses collateral held by a custodian.
You DID not get the fucking point. They borrowed, using collateral and the collateral is… with a custodian.
— Nassim Nicholas Taleb (@nntaleb) June 15, 2022
In February 2022, Taleb said that Bitcoin will not save investors from inflation and market declines.
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