Peter Schiff Weighs In on Bitcoin’s Surge, Credits Clever Marketing

So far, Bitcoin has been on a surge has been shocking for a lot of people for many reasons. While the asset’s price has seen a mixture of red and green in the last 48 hours, finding the primary cause of the surge and the likelihood of a recurrence is top on the minds of speculators. The most recent speculation is coming from Peter Schiff, a notable fan of Bitcoin’s chief rival Gold.

Last week, Schiff took to Twitter to share his thoughts on the latest Bitcoin rally, attributing most of it to an increase in institutional investors that was a result of careful marketing tactics. On the surface, Schiff isn’t far from the truth. Bitcoin has always been an asset to be transferred, and just like pretty much every other asset, its price has always been a reflection of the balance between buyers and sellers.

Bitcoin was a major marketing success for big buyers who got in early. But to really succeed they must dump what they pumped without crashing the price. Doing so requires creating enough FOMO to sucker institutional investors into coming aboard without HODLers jumping ship!

— Peter Schiff (@PeterSchiff) July 27, 2019

However, what gold trading bulls seem timid to point out is that Bitcoin also has a lot of intrinsic value, which comes from its decentralized characteristic. Essentially, it can act as both a currency and an uncorrelated asset, and this is one of the reasons why it gets to be more valuable to many than, say, gold.
It is also worth pointing out that some of the benefits of Bitcoin are getting more acclaim thanks to the destabilization of the global governance structure. Many are beginning to see decentralization as the solution to issues of data control and surveillance. This, as well as the precepts of the “bring down the system” philosophy, means that Bitcoin is appealing to more people.

Essentially, if Bitcoin can provide them with the form of anonymity that they seek and bring them out of the “control” of Central Banks and governments, they’ll be willing to adopt it as well. Much unlike gold, which has pretty much become a part of the establishment that people are deviating from.

So, as innovations in Bitcoin trading and other applications for the crypto asset continue to improve, Bitcoin would appeal to both sides of the spectrum. These are those that want to benefit from its privacy characteristic, and those that want to cash in from its conventional attributes. At this point, almost everyone has one reason or the other to buy cryptocurrency.

Regardless, it seems to be working for Bitcoin so far. As Schiff pointed out, institutional investors seem to be more interested in cryptocurrencies than they ever were. Over the past year, multiple asset custodians, including crypto hedge fund Grayscale Investments and lending service Genesis Capital have recorded increases in institutional crypto investments, and the charge doesn’t seem to be nearing a halt. As institutional investments increase, we are expected to see an increase in Bitcoin’s price.