An event known as a “black swan” is distinguished by its high rarity and significant impact. Nassim Nicholas Taleb, a writer, professor of finance, and former Wall Street trader, is credited with creating the phrase.
Taleb discusses the concept of a “black swan event” in his 2007 book, which is a catastrophic event that is impossible to predict. He claims that because these occurrences are so uncommon and unpredictable, it is crucial for individuals to constantly anticipate the worst-case scenario and make plans in accordance with it.
Taleb defines a black swan as an event that is so rare that not even its likelihood of happening is known. The incident is mainly composed of three parts:
When it does occur, the results are terrible.
It can only be understood in retrospect.
After it occurs, observers are eager to explain it and make assumptions about how it may have been foreseen.
A black swan event is exceptionally negative, bringing about widespread destruction and infamously unpredictable results in the financial (and cryptocurrency) markets.
Nobody can forecast the timing of a black swan occurrence, just as few people can anticipate spotting a black swan among a flock of white ones.
