Bitcoin is scarce, admits Peter Schiff, but that doesn’t matter in this crash
Prominent Bitcoin Critic Has Admitted Bitcoin’s Shortcomings After Recently Saying Crypto Has Future, But There’s A Catch
Vocal Bitcoin opponent, founder and chairman of the SchiffGold fund, economist Peter Schiff, has taken to Twitter to comment on the extended drop in Bitcoin that occurred on Tuesday.
He admitted that Bitcoin is indeed in short supply, but that doesn’t matter now, he said.
Bitcoin dominance is falling hard, its scarcity is not helping
On Tuesday, it crashed 5.61%, falling to a low of $18,630 – its biggest drop in two months. In his tweet, Peter Schiff stated that not only is there an extended Bitcoin crash, but BTC dominance is also falling hard.
Now this metric has fallen to 38.1%, the lowest level since the previous crypto winter in June 2018.
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Schiff believes that the loss of dominance in the crypto market is due to Bitcoin having to compete with nearly 21,000 other cryptos, NFTs and crypto-based stocks. As for the altcoins to which BTC is losing its dominance, Schiff has referred to them as “inherently less valuable” as well as Bitcoin.
Not just is #Bitcoin crashes, but dominance has fallen to 38.1%, the lowest since June 2018. Competes with nearly 21,000 other intrinsically worthless digital tokens, NFTs and #crypto related stocks take a toll. Although Bitcoin is in short supply, the alternatives are not.
— Peter Schiff (@PeterSchiff) 6 September 2022
The economist also admitted that Bitcoin is a scarce resource; But in the current situation, this does not matter, he said, since altcoins have a much larger supply than BTC. Bitcoiners, including Schiff’s son Spencer, rushed to persuade Schiff that he is wrong.
Previously, Schiff admitted that crypto “may have a future,” but Bitcoin will not be a part of it. Influencer David Gokhshtein admitted that Peter Schiff got his BTC prediction right this time.
I guess Peter Schiff was right #bitcoin.
✌🏼
— David Gokhshtein (@davidgokhshtein) 7 September 2022
“$20,000 is a false bottom”
On Tuesday, fund manager and gold bug Schiff took to Twitter to share his opinion that $20,000 is likely to prove a false bottom for the benchmark cryptocurrency.
He mentioned that BTC had been trading near that level for almost two weeks when the market gave naive investors the chance to jump on that bandwagon. He recommended leaving the “sinking ship” before it’s too late.
Oddly enough, the flagship crypt went down deeper the next day after that tweet.
Bitcoin remains in bull market, claims Mike McGlone
On Tuesday, Bloomberg senior commodities strategist Mike McGlone shared a screenshot with a quote from a recent Bloomberg report. It said BTC this year joined such global stores of value, along with gold and US Treasuries.
The report also pointed out that the flagship crypto previously, in 2015 and 2018-19, underwent similar deep crashes as now, after which the price rose to new historical highs.
At the time of writing, Bitcoin is changing hands at $18,785 per coin on the Bitstamp exchange.
