Peter Schiff: "Bitcoin is already dead, long live silver"
Date: 2024-05-21 Author: Oliver Abernathy Categories: BLOCKCHAIN
Peter Schiff, a famous economist and investor, reiterated his negative forecasts for Bitcoin. This time, Schiff compared the first cryptocurrency not with gold, but with silver, emphasizing that the increase in Bitcoin's rate since April was only 2%, while silver grew by 21%. According to Schiff, such a weak result for Bitcoin is a sign of its imminent death.
Market capitalization comparison
Schiff noted that silver's market capitalization is currently $1.83 trillion, which is $500 billion more than Bitcoin, which has a market capitalization of $1.31 trillion. This means Bitcoin needs to rise 40% to reach $93,000 and catch up with silver.
Bitcoin supporters respond
Bitcoin supporters disagreed with Schiff, noting that he selectively uses short-term data to support his arguments. Over the course of the year, Bitcoin is up nearly 60%, while silver's gain over the same period was 14.46%. They emphasized that comparisons of short-term performance may be misleading and do not reflect the long-term prospects of the cryptocurrency.
Misconceptions about Digital Gold
Schiff expressed concern that Bitcoin is often positioned as the digital equivalent of gold. He considers this a misconception and strives to prevent potential investors from making mistakes who may invest in Bitcoin, mistakenly believing it to be analogous to gold. Schiff promised to stop publicly criticizing Bitcoin if its supporters stop comparing the cryptocurrency to gold.
Alternative to the Bitcoin blockchain
In April, Schiff criticized the Bitcoin blockchain for its slow speed and high transaction costs, suggesting tokenization of gold as an alternative. He also urged investors to be wary of spot bitcoin-linked exchange-traded funds (ETFs), pointing out their possible risks and disadvantages.
Peter Schiff continues to be one of Bitcoin's most vocal critics, promoting his ideas about the superiority of precious metals such as gold and silver. His arguments generate lively debate among cryptocurrency supporters and opponents, and his predictions about the future of Bitcoin continue to attract the attention of both investors and the general public.
