Schiff mentioned that Bitcoin’s rally could halt the rally enjoyed by other assets outside of the crypto market. Long-term holders showed great confidence in BTC, as Schiff’s favorite lagged behind.
Peter Schiff, a well-known economist and financial commentator, has repeatedly made his stance on Bitcoin [BTC] clear through public statements and numerous tweets.
While his thoughts are seen by some as valid criticisms backed by sound economic reasoning, they are perceived by others as skeptical and dismissive of the cryptocurrency market in general.
In another round of employing his Bitcoin hammer, Schiff pointed out that the recent surge above $30,000 means the king’s coin was late to the party, already enjoyed by other speculative assets. Referring to all crypto assets as “low quality,” Schiff noted the following:
“Now that Bitcoin has finally joined the party, perhaps it’s a sign that the party will be over soon. Rallies usually end when the lesser quality material finally participates.”
Before the latest rally, Schiff also mentioned that Bitcoin lacked long-term demand. He also highlighted that the investors involved with the $594 billion market cap coin were gambling.
Schiff’s Gold Can’t Match BTC, Still…
Never ashamed to call gold the best store of value, the Euro Pacific Asset Management global strategist’s criticism of BTC began as early as 2013.
Despite several incidents that seem to have shown his opinion wrong, Schiff has never backed down from his point of view. In fact, he once called Bitcoin’s “digital gold” reference a hoax that would never materialize into anything relevant.
However, Schiff’s constant criticism has not yielded the results the man would have wanted. On a year-to-date (YTD) basis, the BTC yield was an 84.57% increase. Gold could only boast a rise of 6.26% in the same period, according to data from Long-Term Trends.
However, in this same year, both Bitcoin and Gold have had a strong correlation. This happened around March when various traditional institutions were plagued with challenges. During this period, Schiff bragged that gold should be the safe haven to go to.
During this period, CoinShares head of research James Butterfill explained that both assets seemed like a less risky investment. This was his conclusion when he compared Bitcoin to other assets, such as the S&P 500.
Schiff: Maxis are “Marketing Frauds”
In 2021, Schiff engaged in a heated debate with SkyBridgeCapital CEO and Bitcoin maximalist Anthony Scaramucci. On that occasion, Scaramucci mentioned that Bitcoin’s scarcity and portability would ensure it transcended gold in the long run, stating that “Bitcoin is being adopted quite quickly and the result of this means that the price is going to go much higher.”
On the other hand, Schiff argued that Bitcoin and gold have absolutely nothing in common. He also added that “Part of the marketing fraud is trying to present Bitcoin as gold: gold 2.0, digital gold. It’s just a string of numbers with no sustainable value.”
In short, Peter Schiff’s views on Bitcoin can be characterized primarily as skepticism, or his determination not to pander to his long series of wrong decisions.
While he has often raised concerns about its volatility and price fluctuations, his points about whether it’s a long-term store of wealth may not stop anytime soon.
By Audy Castaneda
