Economist and well-known opponent of Bitcoin (BTC) Peter Schiff continues to criticize the first cryptocurrency by capitalization and the rapid rise in its price.
According to Schiff, Bitcoin is a bubble. The economist warns that a sharp rise in the value of BTC will be followed by catastrophic events for both investors and the entire economy.
Popular Misconception
Peter Schiff has been skeptical about Bitcoin for years. An ardent supporter of gold firmly believes that cryptocurrency and blockchain are just nonsense that speculators have gathered around.
Schiff once again noted that the collapse of BTC will not only affect those who buy Bitcoin in the hope of making quick money. In his opinion, the entire infrastructure associated with cryptocurrency will collapse. This will lead to “the biggest waste of resources in human history,” the economist said.
According to the financier, the collapse of Bitcoin could also undermine the reputation of libertarian capitalism and the concept of a healthy monetary system.
After Schiff’s comments, controversy erupted again in the crypto community. Some believe that the economist actually secretly owns BTC. He needs criticism so that the price of the asset falls and he can buy it at a lower cost.
The economist added that he believes Bitcoin is a bubble that will inevitably burst.
Schiff on the risks of creating a US Bitcoin reserve
Schiff also recently commented on US President-elect Donald Trump’s idea to create a Bitcoin reserve to reduce the amount of national debt. A BTC critic argues that such a move would be a disaster.
According to the economist, the creation of a Bitcoin reserve will lead to a series of inflationary shocks that could destabilize the economy.
If the US government buys, for example, a million BTC, this will cause the value of the cryptocurrency to rise and encourage long-term holders to sell their holdings. This, according to Schiff, will trigger a collapse that will force authorities to print even more money to stabilize the price of Bitcoin. As a result, the dollar will depreciate.
However, this scenario is based solely on Schiff’s belief that Bitcoin has no intrinsic value. Therefore, BTC cannot be considered a sustainable store of wealth.
The economist’s forecast amused well-known cryptocurrency supporters. Thus, founder and CEO of MicroStrategy Michael Saylor wrote in X:
Meanwhile, according to CoinGeckoBitcoin broke through $89 thousand. Over the past week, the price of BTC has increased by almost 30%. Previously, the cryptocurrency overtook silver in the ranking of the most expensive assets by market capitalization.
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Source: Cryptocurrency
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