Bitcoin questioned after favorable analysis by X Money

The author of the famous Black Swan reignites the debate about the future of money. As the launch of X Money approaches, Nassim Taleb publicly praises Elon Musk’s initiative and does not hesitate to compare it to Bitcoin. For him, this project could embody a much more pragmatic form of private money.

Taleb sees X Money as a new generation of private money

A tweet from Elon Musk was enough to revive the debate. However, it was Nassim Taleb’s reaction that really caught the eye.

Yesterday, the Black Swan author publicly expressed his support for X Money, whose early access launch is scheduled for April. An economist and risk philosopher at X said the initiative is “much smarter than Bitcoin,” a comparison that immediately fired up the crypto community.

For Taleb, X Money goes far beyond a simple payment function grafted onto a social network. He sees it as a concrete experiment in the concept of private currencies, an idea he has long championed.

In this vision, the state should not have a monopoly on issuing money. Companies should be able to offer their own payment instruments and let the market decide.

This principle is called: monetary competition. If several players develop their own systems, users will naturally adopt the one that offers the best balance between stability, availability and everyday practicality.

In this race, X Money starts with serious assets. The service relies on an already massive user base as well as X Payments, its financial subsidiary authorized to operate in more than 40 US states. A foundation that would allow it to gain a foothold much faster than any fintech started from scratch.

The announcement also comes days after Musk publicly confirmed the release of X Money for April, a major step in his ambition to turn X into a financial super app.

Bitcoin vs Musk’s financial pragmatism

The comparison with Bitcoin is not surprising. For several years now, Nassim Taleb has focused on the leading cryptocurrency for one particular reason: its volatility.

For him, a currency worthy of the name must above all enable price fixing and facilitate daily exchanges. With such brutal price swings, Bitcoin struggles to fulfill this role. Taleb believes that it has gradually turned into a speculative asset rather than an operational currency.

On the other hand, X Money seems to be designed for a specific use. The first information includes several expected features:

• instant money transfers between users;
• bank deposits integrated into the platform;
• physical or virtual debit cards.

If these elements are confirmed at launch, X Money would look less like a cryptocurrency wallet and more like a hybrid financial account, somewhere between a social network, a fintech and a traditional bank.

In short, Taleb’s support gives this project an intellectual boost that few would expect. However, the stated ambitions will have to withstand practical testing. If the April launch lives up to its promises, Musk will have accomplished something remarkable: turning the social network into a trusted financial platform without the need for a blockchain.

DISCLAIMER OF LIABILITY

The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.