Peter Schiff criticises Bitcoin amid record growth
Bitcoin critic Peter Schiff warns of impending "bubble burst" in cryptocurrency market
Economist and Bitcoin critic Peter Schiff recently reignited his skepticism toward Bitcoin, calling its recent price surge a “bubble” and forecasting severe consequences for both investors and the broader economy.
A vocal advocate for gold, Schiff described cryptocurrency as a “popular delusion,” warning of what he calls the “biggest misallocation of resources in human history.” Schiff’s comments, posted on X (formerly Twitter), reflect his longstanding belief that Bitcoin is a speculative asset rather than a legitimate store of value, reports BeInCrypto.
Schiff believes the collapse of Bitcoin could damage the reputation of sound money principles and libertarian capitalism. He also dismissed accusations that his critiques are attempts to drive down Bitcoin’s price for personal gain, asserting that he genuinely views Bitcoin’s value as unsustainable. Responding to accusations that he missed out on Bitcoin’s early gains, Schiff acknowledged he did not anticipate the scale of its rise, admitting that he would have invested at $1 if he had known how high prices would soar. However, he insists that the growth is a bubble bound to burst.
Schiff Opposes U.S. Strategic Bitcoin Reserve Proposal
Schiff also took issue with the idea of a U.S. “Strategic Bitcoin Reserve,” a concept introduced by President-elect Donald Trump, who has shown openness to incorporating Bitcoin into the nation’s financial strategy. Schiff argues that establishing a Bitcoin reserve would destabilize the economy, triggering inflationary cycles that could undermine the dollar. In his hypothetical scenario, a government-led BTC purchase would drive up Bitcoin’s price, causing holders to sell off and creating pressure to print more dollars to stabilize prices. This cycle, according to Schiff, could lead to hyperinflation, ultimately devaluing both the dollar and the U.S. Bitcoin reserve.
Prominent Bitcoin advocates, including MicroStrategy’s Michael Saylor, have dismissed Schiff’s warnings, with Saylor responding humorously, “You finally made me laugh, Peter.” The exchange reflects the ongoing clash between Bitcoin supporters, who see it as a hedge against inflation and a revolutionary asset, and skeptics like Schiff, who view it as a speculative bubble poised to collapse. Schiff’s apocalyptic forecast highlights a broader debate on Bitcoin’s role in the global economy and whether it is a viable asset or an unsustainable risk.
Recentrly we wrote, that on November 11, Bitcoin once again hit a new all-time high, surpassing $86,000.
