Nassim Taleb, author of the best-selling book "The Black Swan Effect" and advisor to Universa Investments, said in an interview with CNBC's "Squawk Box" on August 6 that the sudden collapse of the cryptocurrency market on August 5 showed that the asset was not a response to the market system. An effective hedge against sexual breakdown. Nassim Taleb said:

"Bitcoin has proven once again that it cannot hedge your assets against collapse."

On August 5, the entire cryptocurrency market lost $510 billion in value in a massive sell-off. Following this sell-off, more than 60% of the top 50 cryptocurrencies have recouped all of their 2024 gains, according to CryptoQuant. The plunge was triggered by a July 31 rate hike by the Bank of Japan, followed by a sharp rise in the yen in currency markets. That led to a rise in the cost of yen-denominated debt for foreign borrowers, which totaled $2 trillion before the crash, according to a report from ING Bank.

Nassim Taleb pointed out that Bitcoin has performed worse than other assets because it "is a speculative asset that behaves like high-priced real estate in Manhattan" and mainly "tracks the fluctuations of the stock market." In comparison, he believes that gold is a superior store of value because "a gold chain, if it is left on the ground for 10,000 years, it will still be gold."

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