Peter Schiff: Bitcoin is a 'Fraud' and its Strategy May 'Bankrupt'
Peter Schiff, CEO of Europe Pacific Bank, recently launched a fierce attack on Bitcoin and its supporters in a recent X Spaces podcast.
This investor, who manages over $1 billion in assets, not only criticized the essence of Bitcoin but also targeted Michael Saylor's Bitcoin whale company Strategy, predicting that it will 'eventually go bankrupt due to Bitcoin'.
Schiff believes that promoters of Bitcoin have packaged it as 'digital gold', but in reality, its performance is vastly different from gold, and thus this 'marketing' approach is a form of 'fraud'. He pointed out that the trading mechanism of Bitcoin is completely different from that of gold; it is merely a risk asset.
Schiff also questioned the use of Bitcoin, considering it a 'super risk asset' and lacking practical support. He noted that at least tech stocks have profit prospects; when you buy them, you are buying into a company that can make money, while Bitcoin does not have that.
However, Bitcoin supporters argue that Bitcoin not only provides a decentralized financial service, which is simple, practical, reliable, fair, and transparent, making it easy for anyone to use, but it also has immense growth potential.
In addition, the economic attributes of Bitcoin are similar to gold, with limited supply and high difficulty and cost of acquisition. Despite Bitcoin's recent performance being weaker than gold, its significant rise in recent years cannot be ignored.
It is worth noting that from an investment return perspective, since 2009, Bitcoin's return on investment has reached an astonishing 2.82 billion%, far exceeding gold's 230%. As of mid-April, Bitcoin's price increase over the past 12 months has reached nearly 40%.
Nevertheless, Schiff continues to insist that Bitcoin is a 'fraud' and predicts that its strategy may 'go bankrupt'. However, Bitcoin supporters seem unconvinced, believing that Bitcoin's future remains full of potential.
What do you think about the future of Bitcoin? Is it the 'fraud' that Schiff claims, or the 'digital gold' that supporters see? Leave your thoughts in the comments!
