Coin Losses of 330 Trillion Won... 'Black Swan' Author Calls It a "Ponzi Scheme"

Slight Recovery After Sharp Drop
Bitcoin Recovers to $50,000, Dogecoin to 24 Cents

[Asia Economy New York=Special Correspondent Baek Jong-min] Although the total market capitalization of cryptocurrencies decreased by as much as 330 trillion won in one day, the decline is narrowing. Attention is focused on whether it will recover its upward trend or fall further, while the author of the bestseller 'Black Swan' called Bitcoin a "fraud" and compared it to a 'Ponzi scheme' (illegal multi-level financial fraud).

According to CoinMarketCap on the 23rd (local time), Bitcoin is trading at around $50,500, down 3.1% compared to 24 hours ago. The decline narrowed as it recovered to $50,000 after plunging to the $48,000 range during the previous day’s session.

Dogecoin, which had plummeted by as much as 30% intraday, recorded a decline of 11% and rose to 24 cents. Dogecoin had fallen to as low as 19 cents during the previous day’s session.

330 Trillion Won Disappeared in an Instant

CoinDesk reported that the total cryptocurrency market capitalization decreased from $2 trillion to $1.7 trillion, a drop of $300 billion (330 trillion won) in one day, but is currently stabilizing at around $1.89 trillion.

CoinDesk analyzed that Bitcoin’s market capitalization plunged due to the Biden administration’s plan to double the capital gains tax rate.

There is also an analysis that the cause of the sharp drop was forced liquidation of accounts with losses at some exchanges.

After leveraged investments, which allow purchasing large amounts of cryptocurrency futures with a small prepaid amount, increased, rumors of a U.S. Treasury Department investigation into cryptocurrency money laundering last week caused cryptocurrency prices to fall. Subsequently, forced liquidations due to margin shortages led to large-scale sell-offs.

Leveraged Investment Forced Liquidation: Bitcoin at the Crossroads Between Holding $50,000 and Further Decline

CoinDesk conveyed expert opinions that if Bitcoin can maintain the $50,000 level, it could attempt to rise again based on institutional investors’ accumulation.

On the other hand, Nassim Taleb, author of 'Black Swan,' who predicted the financial crisis, appeared on CNBC and claimed that Bitcoin "has characteristics of a Ponzi scheme. Fundamentally, there is no correlation between inflation and Bitcoin," forecasting further decline.

Taleb said, "Hyperinflation may come, and Bitcoin’s price could go to zero," adding, "The cryptocurrency system is beautiful and well-made, but there is no reason for it to be linked to anything economic."

Taleb, who was once favorable toward Bitcoin, pointed out, "I was deceived at first," and criticized, "Fluctuations of 5% per day and 20% per month cannot be considered currency." He also said, "It is pure speculation and is like a game."

Taleb’s book 'Black Swan,' published in 2007, is famous for predicting the global financial crisis. A black swan refers to an event that seems highly unlikely to occur but causes enormous shock and ripple effects when it does.

This content was produced with the assistance of AI translation services.