Add as a preferred source on GooglePeter Schiff Warns Bitcoin Could See a “Massive Washout”
Schiff said the backdrop around Bitcoin’s slump differs from that during earlier gold and Nasdaq downturns, and argued speculative holders may exit.
Economist Peter Schiff warned Bitcoin (BTC) could face a “massive washout,” saying the conditions around its slump differ from those during earlier downturns in gold and the Nasdaq.
In a video published Nov. 12, a questioner asked Schiff why two or three down years for Bitcoin would matter when gold and the Nasdaq had recovered from similar stretches. Schiff said the backdrop around Bitcoin was different. He also argued that a market unable to rise on what he called its strongest news tends to fall.
Schiff called Bitcoin “all hype.” He said it has no inherent worth and pays neither income nor dividends. He also argued that much of its supply is held by exchange-traded fund investors and Bitcoin treasury companies, rather than people who use it as a means of payment.
He expects speculative money to leave and said the decline could move faster than the rise. Schiff said a shakeout of leveraged speculators could give long-term bulls lower-priced opportunities, adding that this was not a time to keep holding Bitcoin.
The remarks follow Schiff’s Nov. 9 Bitcoin crash warning.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.