Peter Schiff Thinks Bitcoin Is Worthless - Find Out More

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Renowned investment manager Peter Schiff claimed that Bitcoin has no value during a recent interview with Anthony Pompliano. In Schiff’s opinion, since a bitcoin or any number of bitcoins cannot be used for anything in the real world, they have no worth.

Behind Schiff’s Opinion: A Deeper Look

Bitcoin has never been a favourite for well-known financial experts. Schiff has referred to it as a digital pyramid scheme in previous interviews, contending that Bitcoin is only valuable if someone else is ready to purchase it. Additionally, he has previously urged cryptocurrency holders to sell their investments and use the proceeds to buy actual gold before they lose everything.

To reinforce his verdict, Peter Schiff states that since Bitcoin has no physical presence, there is absolutely no difference between having one and many of it. On the contrary, gold is one asset that he strongly believes will have a prosperous future since it is “physical value” unlike fiat and cryptocurrencies. From this perspective, gold has real significance as a store of value since it is itself valuable, and widely used in electronics, jewellery, trade, and so on.

Additionally, he predicts that the time ahead will be economically tough, especially for those relying on cryptocurrency as a medium of wealth generation. 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 banes of rising inflation rates coupled with employment losses. Gold alone will be appealing during this period, with its rich history of being used as money for most of human history.

Continuing the Debate: Digital vs Physical Assets

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

According to Schiff, the tendencies that started in 2020 have not peaked, and there will likely be more inflation and economic deterioration in the future. Additionally, the emergence of a multitude of decentralized tokens is another issue for Bitcoin.

On the other hand, gold prices have been on the rise for a long time now. Since Gordon Brown, the Chancellor of the Exchequer at the time, sold a significant amount of gold from the U.K. national gold reserves, the asset has marked a significant rise.

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

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

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

— Seth (@seth_fin) February 7, 2023

Schiff’s remarks are a continuation of the long debate on the future of money, whether it is physical (conventional) or digital (unconventional). Some might even view Schiff’s opinion as coming from a primitive perspective of digital assets and currencies, considering their ever-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 nations are investigating central bank digital currencies (CBDCs) in one way or another.

Digital currencies like cryptocurrency and CBDCs have a lot of benefits to offer:

Quicker payments: You may finish payments far more quickly using digital currency than with traditional methods like ACH or wire transfers, which can take days for financial institutions to authenticate.
Cheaper International Transfers: Currency exchange rates across borders are highly-priced, particularly when there are currency conversions involved. Digital assets could change this market by making it more affordable and quicker.
24-hour access: Because banks are closed on weekends and beyond regular business hours, existing money transfers frequently take longer during such times. On the other hand, digital currencies can be used at any hour of the day at uniform rates.

Gold or Crypto: Which is the Best Money in 2023?

Those who agree with Schiff’s verdict also agree with his concept of Bitcoin lacking any value to store. According to him, Bitcoin has no value, just a market price; and the price cannot be stored. He says that it is important for something to first have a foundational value before it can be converted into money. This concept essentially categorizes even fiat currencies as futile then.

“In my mind, it is a giant pump-and-dump, where the guys that got in relatively early are constantly trying to pump up the market in order to generate a lot of enthusiasm and momentum and FOMO so that they can sell out gradually into this market that they are creating,” Schiff noted in another interview.

Here is the Intelligence Squared #Bitcoin vs. #Gold debate I did with @Scaramucci. Since you Bitcoin pumpers forgot to rig the vote this time I was actually 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 seeking long-term value storage or an inflation hedge, Bitcoin is not a suitable investment choice. Bitcoin is crashing, he says, almost inevitably. According to Schiff, gold is a far safer, more dependable long-term store of value and has a higher potential for dependable future upsurges.

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

Conclusion

Peter Schiff has long been sceptical of Bitcoin and believes that the crypto market is nothing but a fare. Schiff is Euro Pacific Capital’s Chief Economist and Global Strategist. The renowned stockbroker is known for having predicted the financial catastrophe of 2008.

Schiff has established a following as a financial pundit and radio host and has written several books on money and finance. His views may be something that investors must surely not overlook. While it doesn’t essentially mean that cryptocurrencies may not have a future, an increased sense of scrutiny while investing will safeguard investors from facing major losses.

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