Nassim Taleb called bitcoin a “gold mine for lawyers”

According to the economist, uncertainty in the regulation of digital assets creates a favorable ground for civil lawsuits

16.06.2022 - 09:40

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2 min

What’s new? Economist and the author of the bestseller “Black swan. Under the sign of unpredictability,” Nassim Taleb said that bitcoin will become a “gold mine for lawyers.” In his view, the lack of clear rules for regulating the digital assets market provides opportunities for civil lawsuits, for example, as in the case of the collapse of junk bonds.

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 additional 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

Junk bonds are high-yield debt securities whose credit rating is below investment grade. Investment grade refers to a rating that implies a low default risk.

What did the economist advise? Taleb believes if users buy cryptocurrencies based on a direct and explicit recommendation, they need to keep evidence of that recommendation, such as a screenshot. He also noted that because legal costs in the United States are high, parties often go for a settlement. The economist also added that, according to the basics of trading, reservations should be made when voicing investment recommendations.

In February, Taleb published a tweet sharply criticizing the first cryptocurrency. The tweet began with the words “Hannibal ante portas” (Latin for “Hannibal at the gate”), which symbolizes near and serious danger. He also called bitcoin “a perfect sucker game during low interest rates.”

Taleb is known for his skeptical stance on cryptocurrencies. In his view, if bitcoin is adopted en masse, society will still be run by corporations and the super-rich people who own large numbers of coins. For more details on how prominent people from the world of finance criticize the first cryptocurrency, see GetBlock Magazine’s article

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