Peter Schiff, an outspoken critic of Bitcoin, calls it a “total scam”. He believes its price is largely influenced by speculative, government-driven money flows. Schiff sees Bitcoin having no real value, contrasting it with gold, which he views as a safe investment in uncertain times. He is also sceptical about government support for crypto investments.
Peter Schiff, a well-known critic of cryptocurrencies, has held firm on his views, recently dubbing Bitcoin a “total scam.” He argues that its current price does not reflect true market value, instead attributing movements to the influence of government-driven money flows. Schiff sees the rise in Bitcoin’s value as merely the latest episode in a narrative of speculation – fuelled by easy monetary policies from the U.S. government.
According to Schiff, Bitcoin is not a safe haven, nor is it a viable currency or a reliable store of value. Rather, he describes it as a high-risk endeavour resting entirely on blind faith of its investors. In his view, the only genuine asset capable of protecting wealth during inflation and market downturns is gold.
He points out a noticeable divergence in performance between gold and Bitcoin. Recently, gold gained ground as U.S. stock futures and the dollar slipped, highlighting a trend that seems to position Bitcoin more alongside tech stocks than as a substitute for gold. Schiff maintains that Bitcoin’s volatility and risk factor align it more with tech equities rather than precious metals.
Schiff remains pessimistic about Bitcoin evolving into a functional base-layer currency or becoming a financial standard. He claims it lacks intrinsic value or solid backing, marking it as more of a speculative opportunity that thrives on hype and marketing.
On top of his critiques regarding Bitcoin itself, Schiff expresses concern about governmental involvement in cryptocurrency. He opposes the use of public funds to support or engage with the crypto sector, arguing that regulators should not back what he perceives as a predominately speculative market.
