- Bitcoin has undergone a strong rally since the cryptocurrency almost plunged to $0 in March.
- Even still, Peter Schiff has maintained that Bitcoin remains a bubble.
Bitcoin Could Be the Biggest Bubble Ever, Schiff Argues
Bitcoin has undergone a strong rally since the cryptocurrency almost plunged to $0 in March. The cryptocurrency currently trades for $13,300, far above the March lows of $3,500.
Throughout this rally, gold bull Peter Schiff has maintained that Bitcoin remains a bubble.
He made this much clear on October 28th. The fund manager and libertarian investor made the following comment yesterday, saying that Bitcoin is likely the biggest bubble he has ever seen:
“If you measure the size of asset bubbles based on the level of conviction buyers have in their trade, the #Bitcoin bubble is the biggest I’ve seen. Bitcoin hodlers are more confident they’re right and sure they can’t lose than were dotcom or house buyers during those bubbles.”
If you measure the size of asset bubbles based on the level of conviction buyers have in their trade, the #Bitcoin bubble is the biggest I’ve seen. Bitcoin hodlers are more confident they’re right and sure they can’t lose than were dotcom or house buyers during those bubbles.
— Peter Schiff (@PeterSchiff) October 28, 2020
Schiff compares Bitcoin to the Dotcom Boom and Bust and the 2000s Housing Bubble in this message. Both of those bubbles marked some of the most euphoric markets have ever been in human history.
This isn’t the first time Schiff has cast doubt on Bitcoin’s ongoing move higher. He said earlier this month:
“Bitcoin spiked 4% on news that Square invested $50 million (1% of total assets) into #BTC. But that buying has already taken place. Speculators are betting the announcement will attract new buyers. The real news is Square’s buying failed to push BTC above its 2019 high.”
Decreasing Number of Skeptics
Schiff is part of a pool of a decreasing number of BTC skeptics.
Michael J. Saylor, CEO of MicroStrategy, used to be a strong critic of Bitcoin many years ago. One of his tweets resurfaced recently where he was shared bashing the asset.
Now, he is arguably one of its biggest supporters. He pushed his company to acquire a large sum of Bitcoin, $425 million worth that is now worth around $500 million. He himself also owns hundreds of millions worth of Bitcoin, calling it one of the best investments he has seen.
“This investment reflects our belief that BTC , as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash. Since its inception over a decade ago, BTC has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions. MicroStrategy has recognized BTC as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.”
Investors like Raoul Pal, CEO of Real Vision and a hedge fund veteran, and billionaire Wall Street investor Paul Tudor Jones are also Bitcoin bulls.
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