Peter Schiff has been pronounced against Bitcoin (CRYPTO: BTC) for some time. The global economist shared thoughts on how celebrities and big names may have contributed to the rising price of the leading cryptocurrency in 2022.
What happened: Schiff has warned investors that the price of Bitcoin will eventually go to $0, something he repeated in an interview with Bitcoin bull Anthony Pompliano recently.
Fraud and the Fed’s role in increasing the money supply were cited by Schiff as causing the price of Bitcoin to go higher.
“When you have easy money and kind of a casino-like environment, you’re going to have more of that, more fraud,” Schiff said.
Schiff added that Bitcoin has elements of a pyramid scheme, a Ponzi scheme and other illegal activities.
ENTER TO WIN $500 IN STOCKS OR CRYPTO
Enter your email and you’ll also receive Benzinga’s ultimate morning update AND a free gift card of $30 and more!
“In my industry, you sell the sizzle and not the steak. The problem is that with Bitcoin there is no beef, it’s all pickles.”
Related link: Is gold a good investment?
The role of the celebrity: In the interview, Schiff said that celebrities contributed to the unsustainable rise in the price of Bitcoin.
With millions of followers on Instagram and TikTok, Schiff said influencers, celebrities and athletes were the perfect target for companies to pay to promote their cryptocurrency-related products.
“That’s what Kevin O’Leary did, too,” Schiff said, referring to FTX.
Schiff added that O’Leary and Mark Cuban both changed their minds about cryptocurrency after being paid to do so.
Pompliano asked Schiff if celebrities promote gold more than Bitcoin, referring to rappers who wear gold chains or have gold teeth and former president Donald Trump to have a gold toilet and a gold room.
“When rappers have their bling, they don’t promote it as an investment, it’s a way to show off their wealth,” Schiff responded.
Schiff told Pompliano that Bitcoin was being sold as a get-rich investment and “promoted far more strongly” than gold.
“No gold company had a Super Bowl commercial.”
Schiff said his son asked ChatGPT to name the biggest golden bull, and Schiff himself came up with it. Schiff told Pomplinao that there are no known ones connected to gold.
“Gold is nowhere near the hype that Bitcoin is.”
When asked about his son investing in Bitcoin, Schiff said that Spencer Schiff is 20 years old and doesn’t know any better, while there is a rebellious side to children.
“The younger generation always thinks they know something their father, grandfather didn’t know.”
Schiff said that many people who invest in Bitcoin will learn their lesson the hard way.
Read next: Bitcoiner Pomp calls down judge on CNBC, while Cramer becomes collateral damage
Photo: Courtesy of Gage Skidmore on flickr
