Peter Schiff Thinks Bitcoin Is Worthless – Learn More

Renowned investment manager Peter Schiff claimed that Bitcoin is worthless during a recent interview with Anthony Pompliano. In Schiff’s view, since a bitcoin or any number of bitcoins cannot be used for anything in the real world, they are worthless.

Behind Schiff’s Opinion: A Deeper Look

Bitcoin has never been a favorite of well-known financial experts. Schiff has referred to it as a digital pyramid scheme in previous interviews, stating that Bitcoin is only valuable if someone else is ready to buy it. Furthermore, he previously urged cryptocurrency holders to sell their investments and use the proceeds to buy real gold before they lose it all.

To reinforce his verdict, Peter Schiff It establishes that since Bitcoin has no physical presence, there is absolutely no difference between having one and many. On the contrary, gold is an asset that he strongly believes will have a prosperous future, as it is a “physical security” as opposed to fiat and cryptocurrencies. From this perspective, gold has real significance as a store of value, since it is valuable in itself and is widely used in electronics, jewelry, commerce, etc.

Furthermore, he predicts that the time ahead will be difficult economically, especially for those who rely on cryptocurrencies as a means of generating wealth. Many Bitcoin owners, according to Schiff, will have to sell their coins to pay for basic necessities like food. The investment manager also predicts the nightmares of rising inflation rates along with job loss. Only gold will be attractive during this period, with its rich history of use as money for most of human history.

Continuing the Debate: Digital vs. Physical Assets

Over the last ten years, fiat money has become less valuable relative to a wide range of goods, particularly after governments around the world launched major stimulus measures in reaction to the COVID-19 epidemic.

According to Schiff, the trends that began in 2020 have not peaked and more inflation and economic deterioration are likely ahead. Also, the emergence of a multitude of decentralized tokens is another problem for Bitcoin.

On the other hand, gold prices have been rising for a long time. Since Gordon Brown, the Chancellor of the Exchequer at the time, sold off a significant amount of gold from the UK’s national gold reserves, the asset has marked a significant increase.

🌱🌱🌱💵💵💵#Bitcoin it will go to zero!
According @PeterSchiff!

Bitcoin will make new lows!
According to the mactoeconomist experts on twitter!

So I must be an idiot… Because I keep buying! Monthly buy signals on many indicators!#Crypto pic.twitter.com/836nIcqEZl

—Seth (@seth_fin) February 7, 2023

Schiff’s comments are a continuation of the longstanding debate about the future of money, whether physical (conventional) or digital (unconventional). Some might even see Schiff’s opinion as coming from a primitive perspective on digital assets and currencies, considering their increasing relevance in today’s world. This was evident in the form of multiple tweets and posts mocking Schiff’s claim.

The rise of digital currencies

Global central banks are currently investigating the potential functionality of national digital currencies in response to the growth of Bitcoin (BTC), Ethereum (ETH), and thousands of other cryptocurrencies that only exist in digital form. According to the IMF, more than 100 countries are looking into central bank digital currencies (CBDCs) in one way or another.

Digital currencies like cryptocurrencies and CBDCs have many benefits to offer:

• faster payments: You can complete payments much faster with digital currency than with traditional methods like ACH or wire transfers, which can take days for financial institutions to authenticate.
• Cheaper international transfers: Cross-border currency exchange rates are very expensive, especially when currency conversions are involved. Digital assets could change this market by making it more affordable and faster.
• 24 hour access: Because banks are closed on weekends and beyond normal business hours, existing money transfers typically take longer during those hours. On the other hand, digital currencies can be used at any time of the day at uniform rates.

Gold or cryptocurrencies: what is the best money in 2023?

Those who agree with Schiff’s verdict also agree with his concept that Bitcoin lacks value to store. According to him, Bitcoin has no value, just a market price; and the price cannot be stored. He says it’s important that something first have a fundamental value before it can be turned into money. This concept essentially classifies even fiat currencies as worthless then.

“This is a gigantic pump-and-dump in my opinion, where the guys who got in relatively early are constantly trying to inflate the market to build a lot of hype and momentum and FOMO so they can gradually sell off. in this market that they are creating,” Schiff said in another interview.

Here is intelligence squared #Bitcoin against #Gold discussion I did with @Scaramucci. Since you Bitcoin pumpers forgot to rig the vote this time, I was able to win this one. Check it out and judge for yourself. https://t.co/Q2UuZmevAx

—Peter Schiff (@PeterSchiff) August 26, 2021

Schiff goes on to comment that Bitcoin is nothing more than a digital token used for speculative trading. For investors looking for long-term store of value or a hedge against inflation, Bitcoin is not a suitable investment option. bitcoin is crashinghe says, almost inevitably. According to Schiff, gold is a much safer and more reliable long-term store of value and has greater potential for reliable future increases.

However, this cannot be considered a “gold” standard, according to Schiff’s own son, spencer, a cryptocurrency enthusiast. Despite its relative resilience, gold is not the best form of money in 2023, according to Spencer. The industrial applications of the yellow metal and centralized custody are the exact reasons that prevent it from being the preferred form of money.

Conclusion

Peter Schiff has long been skeptical of Bitcoin and believes that the crypto market is nothing more than a fee. Schiff is the chief economist and global strategist at Euro Pacific Capital. The renowned stockbroker is known for having predicted the financial catastrophe of 2008.

Schiff has established a following as a financial expert and radio host and has written several books on money and finance. His views may be something investors surely shouldn’t overlook. While it doesn’t essentially mean that cryptocurrencies have no future, a greater sense of scrutiny when investing will protect investors from facing heavy losses.

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