Bitcoin critic Peter Schiff says both the American economy and US dollar are going to crash
Peter Schiff is a very controversial figure in the world of cryptocurrency and has made some bold claims about the US economy and the US dollar. He believes that Bitcoin is a bubble and that the US dollar will be worth nothing in the near future. He believes that the US dollar will be greatly devalued, so he is advising people to buy gold and silver, and even to buy guns and food, rather than invest in the dollar or in any bonds.
There are a lot of reasons to be fearful of the US government’s reckless spending and money creation. But the biggest problem is that no one has any idea how much longer the debt will be allowed to grow, or what might happen when it starts to be unwound. Peter Schiff is such a prominent gold bug that, in 2005, he was named “Investor of the Year” by the World Gold Council. But Schiff has also been bearish on bitcoin for years. He believes that the virtual currency is in a bubble that will soon burst.
Peter Schiff, CEO of Euro Pacific Capital and a well-known critic of bitcoin, went into doom mode yesterday and predicted that everything would collapse – the US dollar, the US economy and of course bitcoin (BTC).
I don’t think these bitcoin collections will be worth anything anymore when the music stops, Schiff told financial analysis firm RealVision on Wednesday, adding: You can’t do anything with Bitcoin. If no one wants your bitcoin, it becomes completely useless.
Opposing views on the role of government and the nature of money @AshBennington leads a discussion between @profplum99 and @PeterSchiff on everything from the merits of MMT and Austrian economics to inflation and the properties of money.
See https://t.co/WHeGR4Vk0t pic.twitter.com/yBud3o6qjm
– Real Vision (@RealVision) 28. April 2021
He compared bitcoin to the Beanie Baby craze, noting that people could at least use them to insulate their homes by stuffing the toys between the walls when that bubble burst. Bitcoin, on the other hand, can’t even be used for that purpose, Schiff noted.
Bitcoin is not a currency, it is not used as a medium of exchange or unit of account. It is only used for speculation. It is not an investment property like real estate, it does not pay rent, it is not a stock, it does not pay dividends, it is not a bond, it does not pay interest. It’s not even a commodity, because it can’t be used for anything. It’s a collector’s item, Schiff said.
Everything goes wrong
On the other hand, bitcoin is not the only asset that is currently falling in value. According to Schiff, the US dollar is also likely to collapse. The question is which one will be first.
The bitcoin bubble may burst sooner than the dollar bubble. According to Schiff, a cryptocurrency crisis could happen sooner than a dollar crisis. We have a huge government and a huge booming economy, supported by artificially suppressed interest rates. This exacerbates underlying economic imbalances that will eventually have to be corrected by a major economic collapse.
He also argued that people should be disconnected from the government and exempted from income tax and social security. They should be saving for their own retirement instead of relying on a government Ponzi scheme.
The US economy is in much worse shape now than it was in 2000. The imbalance is much greater, the debt much greater. The dollar’s decline will be much greater than that of 2000 to 2008. The next crisis will be a crisis of the US dollar and a sovereign debt crisis, Schiff concludes.
As mentioned, analysts at major US investment bank JPMorgan also recently noted that bitcoin is not immune to global financial uncertainty and has shown weakness recently.
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