It is not all that difficult to find financial “experts” who claim Bitcoin will end up like a dead fish in the water. Peter Schiff has become notorious for his aggressive stance toward Bitcoin, primarily in the price department. Some of his predictions seem off the market, yet they can’t be completely ignored.
Who is Peter Schiff?
Those familiar with the financial industry will know the name Peter Schiff. He is a well-known stock broker and economist. He is also the CEO of Euro Pacific Capital Inc, a broker-dealer out of Connecticut. He also founded the Euro Pacific Bank, an offshore financial institution currently located in Puerto Rico. His ties to traditional finance are well-documented, which also explains why he genuinely dislikes Bitcoin and other cryptocurrencies.
Despite that attitude, Schiff remains very bullish long-term investments. His main areas of interest are – obviously – foreign stocks and currencies, as well as precious metals. Surprisingly, he isn’t a firm believer in the US economy and the US Dollar, despite both seemingly going through a positive period in the past year.
One reason why so many people pay attention to what Schiff says is due to him predicting the financial crisis of 2008. Truthfully, anyone with a smidgen of understanding of financial markets saw that coming, but Schiff actively warned people about it back in 2006. He is also not a fan of minimum wage, as that concept should be abolished altogether. Instead, the poorest and least skilled should be given more opportunities to acquire skills for further employment.
The Bitcoin Bear Case
One thing that has become apparent over the years is how Peter Schiff isn’t interested in Bitcoin. That is perfectly fine, but he also likes to tell people how the value of BTC will continue to plummet. Some of his predictions focus on driving the Bitcoin price as low as $1,000 again, even though that may seem rather unlikely.
The first “major” Bitcoin prediction by Peter Schiff started taking shape in August of 2017. At that time, Schiff claimed how Bitcoin’s value of $4,500 was too high and the “bubble would collapse”. Interestingly enough, the value per BTC shot up to over $19,000 in the months following this comment, thus proving him wrong, of sorts.
Following that brief bullish spell, the Bitcoin price began to retrace in a violent manner. By early 2019, it hit roughly $3,000, which was a 30% decrease compared to $4,500 when Schiff made his comments. It is possible he was proven right in the end, yet the timing of the comment couldn’t have been worse – or better, depending on personal opinion.
More Negative Claims
After seeing his first Bitcoin assessment proven wrong in late 2017, the world didn’t hear much from Peter Schiff until mid-2018. On the Joe Rogan Experience podcast, Schiff continued to warn people how Bitcoin will plummet. It was already evident by that time the entire year of 2018 would be filled with bearish momentum for the world’s leading cryptocurrency. As such, that claim was merely stating facts, even though some hopefuls weren’t ready to give up just yet.
This particular podcast episode also highlighted another bone Schiff had to pick with Bitcoin. More specifically, he wasn’t too happy about the “debate” he held with crypto enthusiasts Peter Voorhees. Schiff even claimed how he “lost the debate, but it was rigged”. A poll was conducted during the debate with Voorhees, albeit Schiff claims the pro-Bitcoin audience skewed the poll that was voted on by the attendees.
All in all, these statements only reinforced Schiff’s position as anti-Bitcoin at its finest. His warning of how BTC would drop to $1,000 was uttered again, and it nearly came true in early 2019. One has to wonder if a drop to such a low value would genuinely mean the proverbial end for Bitcoin, however. It is one of the most resilient financial assets on the market today.
The Pump and Dump Scheme
Even in 2019, Peter Schiff isn’t happy with Bitcoin still being around. Everyone is entitled to their own opinions in this regard. In late October of 2019, Schiff went as far as claiming the value of Bitcoin is heavily manipulated. In fact, he claims it is being “pumped and dumped’ by whales and other wealthy investors.
It is not the first time allegations of manipulation surfaced in the cryptocurrency industry. Not too long ago, there were several reports confirming major exchanges participated in wash trading to make the value of markets look different than they actually were. Although that activity has mostly ended by now, there are still plenty of concerns regarding Bitcoin manipulation.
Bold claims like these are often proven wrong in quick succession. Bitcoin , as well as other cryptocurrencies, has always been extremely volatile. Pretending that volatility doesn’t exist in other financial markets would be extremely shortsighted. Bitcoin’s total valuation is much lower compared to some others, making it more prone to bigger price swings. Despite these swings, the currency tends to perform rather well over longer periods of time.
Fun Fact: The SchiffGold Angle
One interesting tidbit of information is how Peter Schiff runs his precious metals dealer, known as SchiffGold. While there is nothing with that, something interesting has come up. It appears this platform still accepts Bitcoin as a payment method in exchange for its products. A bit of an awkward position for someone who is so outspokenly negative about this cryptocurrency.