This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CORenowned author and thought leader Nassim Taleb published a research paper on Bitcoin's shortcomings.I have looked up to Nassim Taleb for as long as I can remember, having read his books more than once. You may recall that he recently called me an idiot for questioning him on fake news he shared regarding the Coinbase direct listing and me mentioning that being called an idiot by Taleb was a badge of honor. You should check his twitter feed now - he's on a rampage calling Bitcoiners names.Regardless, I love his work, but when it comes to crypto, he has clearly lost site of the forest through the trees. Just this weekend, Taleb posted a 6-page “research article” on Bitcoin titled, “Bitcoin, Currencies, and Bubbles'' who's contents are blatantly false and irresponsible. The abstract gives you a hint on where the argument is headed - “in its current version, in spite of the hype, bitcoin failed to satisfy the notion of "currency without government" (it proved to not even be a currency at all), can be neither a short- or long-term store of value (its expected value is no higher than 0), cannot operate as a reliable inflation hedge, and, worst of all, does not constitute, not even remotely, safe haven for one’s investments, shield against government tyranny, or tail protection vehicle for catastrophic episodes.”Let’s zoom in on one of Taleb’s arguments for a closer look. The first discussion point claims that Bitcoin is worth exactly 0 because “gold and other precious metals are largely maintenance-free, do not degrade over a historical horizon and do not require maintenance to refresh their physical properties over time. Cryptocurrencies require a sustained amount of interest in them.”We can all attest to the fact that maintaining Bitcoin does not cause headaches. In fact, it is simple. Yes, you need to learn a couple of new things about keys and cold storage, but this isn't something most adults can't learn, especially as it becomes more user-friendly over time. If we want to compare gold to Bitcoin, let’s not forget that Bitcoin is more divisible, portable, verifiable, censorship-resistant, and scarce than gold. And to the point about degradation, I have never seen a Bitcoin degrade and I can count on the fact that it never will. Taleb continues to make a dozen other misleading and ignorant claims throughout the paper. Here are a couple of my favorites. “There is a conflation between success for a "digital currency", which requires some stability and usability, and speculative price appreciation.” “Transactions in bitcoin are considerably more expensive than wire transfers or other modes.”I’m aware that I am biased here because I believe in crypto, but that does not negate my belief that most of the claims made in the paper can be objectively refuted. With that in mind, I encourage you to read through the paper and work out arguments against the claims to test your knowledge. I suspect we will see a lot of thorough responses to the paper during the coming weeks aiming to properly bury this nonsense. I also suspect we will see almost everyone who attempts to respond to Taleb being called an idiot or amoeba.Bashing Bitcoin may be cool for now, but eventually, the fad will die.HERE IS THE ENTIRE PAPER.SIDE NOTE - There is an INCREDIBLE amount of FUD (fear, uncertainty, doubt) in the news and community surrounding Bitcoin and cryptocurrencies. I largely remain unemotional about the market, but have to admit that I woke up today and was immediately annoyed and somewhat dismayed about what I was seeing. My portfolio is hitting new lows after all time highs just months ago, just like anyone who holds with conviction.Usually these emotions start to present near the bottom. I am NOT saying the bottom is in, but I am just taking an honest look at myself and where we likely are in the cycle. Negative emotions like fear and doubt tend to be near the lows. How are you feeling?I will be live streaming today at 2 PM EST, come hang out, talk markets and get a live look at what Bitcoin is doing!Link: https://www.youtube.com/watch?v=QHlVsewj5kAIn This Issue:Nassim Taleb Write A Scathing Bitcoin ReportBitcoin Thoughts And AnalysisAltcoin ChartsNews Cycle Goes Uber BearPlanB’s Worst-Case ScenarioChina Doubles Down On Banking BanThe Bright Side Of China’s Bitcoin Mining CrackdownMicroStrategy Buys 13K More BitcoinsMy Recommended Platforms And Tools
The Wolf Den #268 - The FUD Storm Commences
The Wolf Den #268 - The FUD Storm Commences
The Wolf Den #268 - The FUD Storm Commences
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CORenowned author and thought leader Nassim Taleb published a research paper on Bitcoin's shortcomings.I have looked up to Nassim Taleb for as long as I can remember, having read his books more than once. You may recall that he recently called me an idiot for questioning him on fake news he shared regarding the Coinbase direct listing and me mentioning that being called an idiot by Taleb was a badge of honor. You should check his twitter feed now - he's on a rampage calling Bitcoiners names.Regardless, I love his work, but when it comes to crypto, he has clearly lost site of the forest through the trees. Just this weekend, Taleb posted a 6-page “research article” on Bitcoin titled, “Bitcoin, Currencies, and Bubbles'' who's contents are blatantly false and irresponsible. The abstract gives you a hint on where the argument is headed - “in its current version, in spite of the hype, bitcoin failed to satisfy the notion of "currency without government" (it proved to not even be a currency at all), can be neither a short- or long-term store of value (its expected value is no higher than 0), cannot operate as a reliable inflation hedge, and, worst of all, does not constitute, not even remotely, safe haven for one’s investments, shield against government tyranny, or tail protection vehicle for catastrophic episodes.”Let’s zoom in on one of Taleb’s arguments for a closer look. The first discussion point claims that Bitcoin is worth exactly 0 because “gold and other precious metals are largely maintenance-free, do not degrade over a historical horizon and do not require maintenance to refresh their physical properties over time. Cryptocurrencies require a sustained amount of interest in them.”We can all attest to the fact that maintaining Bitcoin does not cause headaches. In fact, it is simple. Yes, you need to learn a couple of new things about keys and cold storage, but this isn't something most adults can't learn, especially as it becomes more user-friendly over time. If we want to compare gold to Bitcoin, let’s not forget that Bitcoin is more divisible, portable, verifiable, censorship-resistant, and scarce than gold. And to the point about degradation, I have never seen a Bitcoin degrade and I can count on the fact that it never will. Taleb continues to make a dozen other misleading and ignorant claims throughout the paper. Here are a couple of my favorites. “There is a conflation between success for a "digital currency", which requires some stability and usability, and speculative price appreciation.” “Transactions in bitcoin are considerably more expensive than wire transfers or other modes.”I’m aware that I am biased here because I believe in crypto, but that does not negate my belief that most of the claims made in the paper can be objectively refuted. With that in mind, I encourage you to read through the paper and work out arguments against the claims to test your knowledge. I suspect we will see a lot of thorough responses to the paper during the coming weeks aiming to properly bury this nonsense. I also suspect we will see almost everyone who attempts to respond to Taleb being called an idiot or amoeba.Bashing Bitcoin may be cool for now, but eventually, the fad will die.HERE IS THE ENTIRE PAPER.SIDE NOTE - There is an INCREDIBLE amount of FUD (fear, uncertainty, doubt) in the news and community surrounding Bitcoin and cryptocurrencies. I largely remain unemotional about the market, but have to admit that I woke up today and was immediately annoyed and somewhat dismayed about what I was seeing. My portfolio is hitting new lows after all time highs just months ago, just like anyone who holds with conviction.Usually these emotions start to present near the bottom. I am NOT saying the bottom is in, but I am just taking an honest look at myself and where we likely are in the cycle. Negative emotions like fear and doubt tend to be near the lows. How are you feeling?I will be live streaming today at 2 PM EST, come hang out, talk markets and get a live look at what Bitcoin is doing!Link: https://www.youtube.com/watch?v=QHlVsewj5kAIn This Issue:Nassim Taleb Write A Scathing Bitcoin ReportBitcoin Thoughts And AnalysisAltcoin ChartsNews Cycle Goes Uber BearPlanB’s Worst-Case ScenarioChina Doubles Down On Banking BanThe Bright Side Of China’s Bitcoin Mining CrackdownMicroStrategy Buys 13K More BitcoinsMy Recommended Platforms And Tools