Peter Schiff predicts that the world will shift from fiat to digital currencies, but not Bitcoin
Long-term Bitcoin (BTC) critic and CEO of Euro Pacific Capital, Peter Schiff, has predicted a global shift from fiat currencies to digital alternatives.
Schiff believes that an alternative likely to be embraced by global economies will be digital gold, but expressed skepticism about Bitcoin’s ability to become one of the digital currencies of the future, he said in an interview with Mike Adams on March 17.
According to Schiff, people will start trading digital gold either through blockchain technology or private companies that tokenize the metal. He noted that the move to digital currencies would be due to the dollar’s rapid devaluation.
“Eventually, I think the world will move away from fiat currencies and I think many people will start trading gold again. <...> I know there are some people out there who think they’re going to use Bitcoin, it’s not going to happen,” Schiff said.
Devaluation of the dollar
As the United States continues to battle rising inflation, Schiff warned that the dollar risks being devalued in the same way as currencies in countries such as Argentina with the Argentine peso.
“When the dollar really starts losing money quickly, you know, when we’re like Argentina or something like that, and when you can’t even risk keeping short-term money in dollars, it’s not that bad yet,” he added.
Despite Schiff advocating a possible shift towards digital gold, the economist had initially stated that the precious metal partially lost interest during the 2021 cryptocurrency. According to a Finbold report, Schiff stated that the attention on Bitcoin saw investors ignore gold.
In fact, Bitcoin has earned a comparison to gold, with proponents claiming the digital currency to replace the metal and become the ultimate store of value.
Schiff’s Bitcoin Objection
Schiff’s gloomy outlook for Bitcoin’s ability to serve as a go-to digital currency is consistent with his longstanding objections to the first cryptocurrency. In fact, the banker has advocated for investors to sell their Bitcoin holdings, claiming that BTC is likely to correct to zero.
Earlier, Schiff suggested that the recent rally was a bubble that would inevitably burst, and the significant correction observed in 2022 was the result of a massive pump-and-dump scheme. He stressed that the market witnessed an increase in value, but investors failed to recognize the subsequent decline in value.
Schiff has also predicted a continued deterioration of the global economy that will significantly affect the US banking ecosystem, which is already in crisis. Finbold reported that Schiff warned investors to prepare for a “major collapse ahead” of the country’s banking system.
Watch the full video below:
Featured image via Peter Schiff YouTube.
