Peter Schiff, CEO of Euro Pacific Capital and a well-known Bitcoin critic, went totally into pessimistic mode yesterday with predictions of everything falling apart – the US dollar, the American economy and, of course, Bitcoin (BTC).
“I don’t think these Bitcoin collections are worth anything when the music stops,” said Schiff in interview with the financial analysis company RealVision on Wednesday, adding, “You can’t do anything with Bitcoin. Since nobody wants your Bitcoin, it is completely useless. “
💥Opposing Views on the Role of #Government & the Essence of #Money💥@AshBennington moderates a discussion between @ profplum99 & @PeterSchiff on everything from the merits of MMT & Austrian Economics to inflation & the characteristics of money.
– Real Vision (@RealVision) April 28, 2021
Opposing views on the role of #Government & The essence of #Money collision symbol. @AshBennington moderates a discussion between @ profplum99 and @PeterSchiff on everything from the merits of the MMT and the Austrian economy to inflation and the characteristics of money.
He went on to compare Bitcoin with the Beanie Babies craze, noting that people apparently could use them to insulate their homes, pushing toys “between the walls” when the bubble collapsed. Bitcoin, on the other hand, cannot be used even for this, Schiff noted.
“Bitcoin is not a currency, it is not really used as a medium of exchange, or a unit of account. It is used only for speculation. It is not an investment asset like a property, it does not pay rent, it is not a share, it does not pay dividends, it is not a bond, it does not pay interest. It’s not even a commodity, because you can’t use it for anything. It is a collectible token ”.
Everything is going down
On the other hand, Bitcoin is not the only asset that is in decline. According to Schiff, the US dollar is also expected to collapse. The question is, which one will be the first to go?
The Bitcoin bubble may burst before the dollar bubble. We may have a cryptocurrency crisis before we have a dollar crisis. We have a huge government and a giant bubble economy that is underpinned by artificially suppressing interest rates. This continues to exacerbate those underlying economic imbalances that will ultimately need to be corrected with a major economic meltdown.
He also argued that people should be “released” from the government and free from income taxes or social security. Instead, they will be better off saving for their own retirement, rather than relying on “a government Ponzi scheme”.
“The economy of the United States today is in a much worse state than it was in the year 2000. The imbalances are much greater, the debts are much greater. It will be a much bigger drop in the dollar than we had from 2000 to 2008. The next crisis will be a crisis of the dollar and the sovereign debt ”, concluded Schiff.
As reported by CryptoSlate, analysts at the largest US investment bank JPMorgan have also recently pointed out that Bitcoin is not immune to global financial uncertainty and is showing “weakness” lately.