Peter Schiff Counters Michael Saylor, Debunks Bitcoin Promises
Prominent Bitcoin critic Peter Schiff and advocate for gold, has once again expressed his skepticism toward Bitcoin, following Michael Saylor’s bold prediction that it could reach $13 million per coin within the next 21 years. Schiff, who has long questioned the viability of cryptocurrencies, described Saylor’s prediction as unrealistic and challenged the long-term sustainability of Bitcoin’s demand.
Peter Schiff Criticizes Bitcoin’s Limited Supply Argument
In a recent post on X (formerly Twitter), the Bitcoin critic Peter Schiff has addressed the argument regarding BTC’s limited supply. He acknowledged that while the cryptocurrency is scarce, this scarcity alone does not guarantee rising prices. He pointed out that its price is highly dependent on new buyers entering the market. According to him, without new demand, prices could drop, as sellers may outnumber buyers, leading to a price crash.
Yes, #Bitcoin has a limited supply. As long as more people want to buy it, but those who already own it don’t sell, the price goes up. But when the supply of new buyers runs low and those who own it want or need to sell it, the lack of new demand causes the price to crash.@saylor
— Peter Schiff (@PeterSchiff) September 10, 2024
Peter Schiff went further, comparing the cryptocurrency to gold, which he believes has an inherent, lasting value.
“There will always be demand for gold. Gold is a metal that will always be needed. There will not always be demand for Bitcoin,” he said.
According to Schiff, the fundamental difference between the two assets lies in the physical utility and historical track record of gold, which he believes the crypto cannot replicate.
Saylor’s $13 Million BTC Prediction
Michael Saylor, the founder and CEO of MicroStrategy, made waves during a recent appearance on CNBC’s “Squawk Box” by predicting that the cryptocurrency would hit $13 million per coin in the next 21 years.
Saylor has consistently championed BTC as a superior store of value and a hedge against inflation. He emphasized that its global appeal and limited supply make it a unique investment opportunity, one that could eventually capture 7% of the world’s capital.
Despite MicroStrategy’s aggressive BTC acquisition strategy, Peter Schiff remained unconvinced, pointing out that MicroStrategy’s stock price has struggled. He remarked,
“What a bunch of nonsense. CNBC is too beholden to their crypto advertisers to really push back against your false statements. MSTR is down 40% from its 52-week high and is 6% below its 2021 high. The actual returns are not nearly as rosy as you describe and will soon get worse.”
A Gold vs. BTC Debate
Peter Schiff, a long-time proponent of gold, highlighted the ongoing debate between the two assets, contrasting gold’s tangible, practical uses with the cryptocurrency’s digital nature. He insisted that gold’s role as a stable store of value will continue for the foreseeable future, whereas BTC’s demand is subject to speculation and technological shifts.
In contrast, Saylor remains steadfast in his belief that its decentralized and scarce nature will lead to widespread adoption, making it a dominant global asset. MicroStrategy has accumulated over 226,500 BTC, reinforcing Saylor’s long-term commitment to the cryptocurrency despite market volatility.
Bitcoin critic Schiff’s comments on Saylor’s interview are part of his broader critique of the cryptocurrency space. While Schiff acknowledges that there may be short-term gains in the crypto, he consistently argues that it lacks the long-term reliability of traditional commodities like gold. He also pointed out what he sees as the speculative nature of its investments, which he believes are driven more by hype than by intrinsic value.
Meanwhile, other analysts have set bullish predictions for BTC. Peter Brandt for instance has recently hinted on a potential for Bitcoin price to explode in the next year. As per his forecast, the next target for the cryptocurrency is $150,000 by 2025.
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