Peter Schiff, a well-known bitcoin critic, recently participated in a thought-provoking discussion about the value of bitcoin relative to gold. Despite long-standing skepticism of him, Schiff has presented a scenario in which bitcoin could reach approximately $10 million by 2031.
However, the bitcoin critic responded that this could happen under particular economic conditions.
Schiff's extreme hypothesis about bitcoin's rise to $10 million
This bold statement comes from The Economist's comparison of bitcoin's potential growth trajectory to gold, highlighting the volatility of crypto assets and the lively optimism of their proponents.
No matter how low the price of bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin falls, its defenders will always be able to claim its surpassed performance #gold. For example, even if bitcoin falls to $100 in 2031 and gold rises to $10,000, they will claim that bitcoin has increased 100 times in the last 20 years, while gold has only increased 5 times.
—Peter Schiff (@PeterSchiff) January 26, 2024
Commenting below this post, a user asked, “What happens if bitcoin hits $10,000.00 by 2031?” Schiff then responded with a “hypothetical” scenario revolving around the dramatic collapse of the US dollar, similar to the fate of the German paper mark after World War I. During that period, Germany experienced rampant hyperinflation, devastating the value of its currency.
Schiff suggests that only if a similar drop in the US dollar occurs will the price of btc catapult to $10 million. However, it is important to note that this scenario is highly “hypothetical” and the crypto critic is trying to convey that bitcoin can only reach $10 million in an “extreme” case of economic upheaval.
If the US dollar follows the same path as the German paper mark, then I guess that's possible.
—Peter Schiff (@PeterSchiff) January 26, 2024
Community reactions to Schiff's post
Notably, Schiff remains a staunch critic of bitcoin. He recently expressed concern about possible regulatory changes under Securities and Exchange Commission (SEC) Chairman Gary Gensler. He predicted that increased regulations could increase bitcoin's transaction costs and negatively affect its market value.
However, the crypto community often counters Schiff's bearish outlook with a mix of criticism and humor. Influential figures such as Samson Mow and Mike Alfred have responded directly to Schiff's comparisons between bitcoin and gold, often highlighting bitcoin's resilience and growth over the years.
Bro, in 2011, when gold was $2,000 and btc was worth $10, you said btc was going to go to zero and everyone should buy gold. 13 years later, gold is still at $2,000 and btc at $40,000. Only for.
—Jeff Berwick (@BerwickJeff) January 26, 2024
Mow, in particular, has he pointed that once bitcoin surpasses gold's market capitalization, gold could be relegated to its “industrial utility cost.”
Once bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoin exceeds the market capitalization of gold, gold will be demonetized at its industrial utility cost.
– Samson Mow (@Excellion) January 26, 2024
These responses from the crypto community show the strong belief in the potential of bitcoin and its role in shaping the future of global finance.
Meanwhile, in the current market, btc has shown signs of recovery. At the time of writing, bitcoin is trading above $40,000, a notable increase from its previous values of less than $39,000 earlier this week.
Featured image from Unsplash, chart from TradingView
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