The well-known gold supporter Peter Schiff is an adamant Bitcoin and cryptocurrency skeptic who frequently voices his misgivings about Bitcoin. In a recent Tweet, he now claimed that Bitcoin would never hit 100.000 USD.
Peter Schiff’s rationale for deeming Bitcoin and other cryptos essentially worthless is that they are inherently unfit to be a store of value, especially when compared to gold and silver and that whales are manipulating hapless crypto enthusiasts left and right to squeeze out some profits.
In another recent statement he added:
“BTC hodlers won’t sell as they believe they’ll get rich when it moons. Whales get rich by selling now to realize their paper gains before a market crash wipes them out. The whales must make sure the hodlers don’t lose faith and cash out so that they can cash in!”
Basically, Schiff is claiming that Bitcoin has no underlying value and is only worth something due to the hype not having died yet. He further does not believe that the technology and its use cases that are currently deployed or in development do not justify the cryptocurrency’s value.
Why gold is supposed to be different remains unclear
But is that view not a bit too simplistic? To many Bitcoin supporters, it amounts to the same as if one would simply disregard the actual use cases of gold and silver outside of their monetary value. Without industry use and demand, what is the difference between gold, silver, and Bitcoin?
In recent months, many articles have been published whose authors believe that, after its recent rally, gold is poised to climb to over 5,000 USD and that now is the time to invest before its too late. Especially with a possible economic crash and recession looming on the horizon. A similar story that cryptocurrency enthusiasts are telling for Bitcoin.
Other analysts evaluate Bitcoin more positively
While Peter Schiff may be critical of Bitcoin and its ability to serve as a store of value, other analysts are still convinced that Bitcoin has a lot of potential. In a tweet at the end of October, @100trillionUSD (PlanB) revealed that the popular stock-to-flow model predicts that Bitcoin’s fair value will be somewhere between 50k-100k USD after the Bitcoin halving event in May 2020.
What do you think? Is Peter Schiff right about Bitcoin essentially being worthless? Is the promise of legendary profits really the only thing causing investor’s to buy Bitcoin and making them blind to the nature of the game that is being played?