Schiff also criticized mainstream media coverage of Bitcoin ETFs, noting that many analysts expressing caution now did not offer such warnings before their launch.
Peter Schiff, a renowned economist and Gold bug, commented on the Bitcoin price while predicting it to go to $10 million in the future. Interestingly, Schiff has been a huge critic of Bitcoin and has been often vocal about his anti-Bitcoin stand.
Schiff believes that the BTC price can rally to $10 million only if the US Dollar collapses like the German Papiermark during the 1920s. Following World War I, Germany underwent a period of hyperinflation, predominantly during the years 1921 to 1923. The hyperinflation reached such extreme levels that the Papiermark, Germany’s currency during that period, witnessed a substantial and rapid devaluation, virtually rendering it valueless.
Peter Schiff also drew a parallel between Bitcoin and gold, emphasizing his strong advocacy for the precious yellow metal. His observation underscores a prevalent trend among Bitcoin enthusiasts, who often perceive Bitcoin’s expansion positively, despite its massive inherent volatility. Schiff wrote:
“No matter how low the price of Bitcoin falls, its proponents will always be able to claim its outperformed gold. For example, even if Bitcoin falls to $100 in 2031 and gold rises to $10,000, they will claim that Bitcoin is up 100x in the past 20 years, while gold is only up 5x”.
Schiff has consistently voiced doubt regarding Bitcoin’s intrinsic value and associated investment vehicles like Bitcoin ETFs. He stresses that Bitcoin lacks inherent value and only relies on collective belief and scarcity for its perceived worth.
Additionally, Schiff criticized mainstream media coverage of Bitcoin ETFs, noting that many analysts expressing caution now did not offer such warnings before their launch. As we know, the BTC price has come under severe selling pressure after the spot ETF approval. Recently, the Bitcoin price took a dive under $40,000.
Bitcoin vs Gold – The Classic Debate
Bitcoin had a strong resurgence last year in 2023 gaining by 150%. However, the same might not be true this time. Mike McGlone, Bloomberg’s senior commodity strategist, believes that Bitcoin could underperform the stock market this year in 2024, on a risk-adjusted basis.
As per McGlone, despite optimism following the approval of spot Bitcoin ETFs and the forthcoming Bitcoin halving, macroeconomic factors may hinder the cryptocurrency from achieving new all-time highs in 2024.
He added that the expectations that the US Fed rate cut could provide a significant boost to the Bitcoin price, are not real. “The Fed will not ease with the ease it has in the past because of inflation it created with easing too much,” he added during his interview with CoinTelegraph.
#Gold set to beat #Bitcoin in 2024 unless the stock market can keep going up. https://t.co/ApRZ8K8Ptz
— Mike McGlone (@mikemcglone11) January 25, 2024
As per McGlone, the US economy could be slipping into recession this year, thus dragging the stock market down. Bitcoin being a risk asset could face a similar fortune to stocks, believes McGlone. “When the stock market and beta goes down, Bitcoin goes down more,” McGlone said.
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