Following the underwhelming performance of Bitcoin (BTC) subsequent to the highly anticipated launch of the inaugural spot BTC exchange-traded fund (ETF) in the United States, economist and well-known detractor of the leading cryptocurrency, Peter Schiff, has assumed a stance of vindication, accentuating the losses to the cryptocurrency community.
Schiff has indeed emphasized that the crypto sector had previously dismissed his cautionary remarks regarding Bitcoin’s susceptibility to the ‘buy the rumor, sell the news’ phenomenon following the approval by the United States Securities and Exchange Commission (SEC) of the 11 spot Bitcoin ETFs:
“The Bitcoin ‘experts’ who ridiculed me and anyone else who claimed the new Bitcoin ETFs would be a ‘buy the rumor, sell the news’ event are now dismissing the significance of the decline, claiming it’s just a classic ‘buy the rumor, sell the news’ event that was to be expected.”
Bitcoin’s Binary Future: Zero or $10 Million?
Given this perspective, he reiterated his prior conviction that the original cryptocurrency would inevitably crumble, asserting that its worth would diminish to nothing. He contended that the recently sanctioned spot BTC exchange-traded funds “aren’t generating supplementary demand, but simply redistributing existing demand.” As he articulated:
“Investors who might have bought actual Bitcoin, Bitcoin-related equities like MSTR or GBTC are simply buying the new ETFs instead. Rearranging the deck chairs won’t stop the ship from sinking.”
In conclusion, Schiff delivered a final blow to BTC’s advocates, remarking that “regardless of how steeply BTC’s price declines, its supporters will always assert its superiority over gold.” Even if it plunges “to $100 by 2031 while gold climbs to $10,000, they will argue that BTC has surged by 100 times over the past two decades, while gold has only increased by 5 times.” Interestingly, when popular investor and trader Harsh Dixit inquired about the implications if the flagship decentralized finance (DeFi) asset were to attain a price of $10 million by 2031, the renowned gold advocate effectively concluded any further discussion by stating:
“If the U.S. dollar goes the way of the German Papiermark then I suppose that’s possible.”
Just to recall, the Papiermark served as the German currency from 1914 to 1923. Its value dramatically plummeted due to hyperinflation following World War I, rendering it nearly worthless. Consequently, the government initially substituted it with the Retenmark, later replaced by the Reichsmark. Meanwhile, as of the current press time, Bitcoin was being traded at $42,256, marking a 1% decrease for the day but still reflecting a 3.26% rise over the past week and a 1.34% gain on its monthly chart.