Black Swan Event

The expression Black Swan was first coined by the Scottish philosopher David Hume in the 17th century. It was later popularized by the economist, writer, professor at the University (NYU), and former Wall Street broker, Nassim Nicholas Taleb, in one of his famous books, The Black Swan: The Impact of the Highly Improbable”. He used the term to describe the unexpected occurrence of an event and its aftermath.

The Black Swan event has three primary components:

  • The results of the event would be extremely dreadful.
  • We can explain the incident. It seems that way, at least in retrospect.
  • The observers would be eager to explain what has happened and whether they could have predicted it or not.

A Black Swan event may have a terrible outcome, especially in the cryptocurrency space. The 2008 Global Financial Crisis is one such example of the Black Swan event in the finance domain. But no one can predict the event. When it would happen and its serious outcome in the cryptocurrency space.