Peter Schiff is a well-known economist and an author but not a big fan of the crypto industry. He has criticized bitcoin several times in the past. He even went on to say that bitcoin is a Ponzi scheme and will crash to zero in the coming years. However, he is a vocal advocate of precious metal gold and believes that it is better and more valuable than cryptocurrency with no intrinsic value.
“Bitcoin will moon as bitcoin crashes back to earth.”
My money is where my mouth is. I own no #Bitcoin and am long lots of #gold and #silver, and even larger positions in precious metals mining stocks. That’s effectively a big bet against Bitcoin becoming the new gold, or taking safe haven/store of value market share away from gold.
— Peter Schiff (@PeterSchiff) April 11, 2020
The leading cryptocurrency bitcoin is commonly referred to as digital gold by many in the crypto industry and outside. The Chairman of the US Federal Reserve, Jerome Powell, also referred to bitcoin as a speculative store of value, just like gold. Peter Schiff tweeted that over the past several years, BTC hodlers poked fun at gold investors because Bitcoin gained so much more than gold. But the roles will reverse in the coming years, he added. He also said that the roles would reverse not because gold rises more than Bitcoin, but because gold moons as Bitcoin crashes back to earth.
“Bitcoin will never be money.”
Cavemen didn’t invent money, it was not invented until about 5K B.C. Gold only became money about 700 BC. So its actually pretty modern. Plus it’s a metal, not a rock. Bitcoin will never be money. Not even cavemen would be dumb enough to accept it.
— Peter Schiff (@PeterSchiff) April 11, 2020
The main reason that Peter Schiff uses to criticize bitcoin is that the leading cryptocurrency has no intrinsic value or physical existence. When a user replied to his tweet saying that gold is archaic and it worked well for non-digital societies, and in the current modern society, bitcoin is a better form of money and to store your wealth in, Peter Schiff replied that gold only became money about 700 BC and it is actually pretty modern. Peter Schiff further added that bitcoin would never be money, and not even cavemen would be dumb enough to accept it.
At the time of writing, bitcoin is changing hands at just above $6,800. The leading cryptocurrency witnessed historic lows last month when its price dropped below $4,000. The leading cryptocurrency is still coupled with traditional markets, and the short-term prediction is still quite bearish.
