Bitcoin Critic Peter Schiff Makes His Final BTC Comment of the Year – Here’s What He Expects
Renowned economist and gold advocate Peter Schiff, in his latest appearance on television, drew attention to the “silent collapse” in the global economy and issued stern warnings to Bitcoin investors.
Schiff argued that Bitcoin is not “digital gold,” but rather a risky asset that masks the corruption in the financial system.
Schiff described Bitcoin’s recent performance as “the slowest horse in the race.” He noted that investors were turning to BTC expecting huge gains, but gold and silver had performed much better. “People will be disappointed as they miss out on the massive gains in gold and silver mining stocks. The exits from Bitcoin will accelerate when they realize they bet on the wrong horse,” Schiff said.
Schiff argues that the “hot money” that came with the launch of Bitcoin ETFs will not be permanent, claiming that this money actually came from gold and will return to where it belongs. According to Schiff, Bitcoin ETF holders do not have a “HODL” culture and will sell and turn to gold at the first serious shock.
Schiff stated that one of the biggest risks in the Bitcoin market is loans taken out against Bitcoin. “Many people have borrowed using their Bitcoin as collateral to avoid paying taxes or missing out on a price increase. When the price falls, these people will have no choice. Lenders will dump their Bitcoins onto the market at the most inopportune time,” he warned.
The renowned economist, who described Bitcoin’s verifiability via the blockchain as “the verification of nothingness,” argued that gold-backed tokens have a real equivalent. Schiff reiterated that cryptocurrencies lack intrinsic value, stating, “With Bitcoin, you’re verifying ownership of nothing, not something. With gold, at least you’re verifying ownership of a physical asset.”
Schiff strongly opposes the marketing of Bitcoin as a safe haven, arguing that data shows Bitcoin is positively correlated with risky assets (such as technology stocks) and negatively correlated with gold. According to Schiff, when the dollar crisis deepens, people will turn to gold, which has proven its value for thousands of years, rather than Bitcoin.
