Peter Schiff and his predictions about a possible collapse of Bitcoin

According to Peter Schiff, the near collapse of Bitcoin (BTC) is something that is inevitable. However, it is important to remember that the entrepreneur has been characterized as a betrayer of the criptomoneda. Therefore, look for any opportunity to talk about a supposed “end” of BTC. In this opportunity Schiff, CEO of Euro Pacific Capital, believes that Bitcoin will follow the path of action as marijuana. He believes that the rally in these shares to the beginning of the year was driven by speculators, who were also buying cryptocurrencies. However, both assets eventually fall. And this fall is already starting. In the past six months, the price of marijuana in the united States has fallen considerably. Indicating that its value on the stock exchange also. This has led to Peter Schiff to believe that Bitcoin will face a similar fate. As the speculators try to reduce losses by selling cryptocurrencies, the higher the probability that the asset to collapse and lose its value. However, there are several reasons why the community cryptographic criticizes this kind of argument on the part of Schiff.

How serious Bitcoin is on the verge of collapse?

The main problem with the postulate of Schiff is that there is a real correlation between the actions of the marijuana and Bitcoin. In reality, both cases are completely different. In fact, there is research that shows that the management of BTC is not dependent on the stock market. Which is not the case with marijuana. Therefore, it makes no sense to try to force a relationship between the two, or between Bitcoin and the stock market, because it does not exist. Another of the reasons that it discredits what has been stated by the CEO is the assumption that all who invest in cryptocurrencies are speculators. This would not make sense if it is considered that the volatility of Bitcoin has decreased to 2% daily, depending on BitMex. These figures should encourage institutional investors to bet on the cryptocurrencies, something that is already happening. Therefore, the premise of the speculation loses validity. It is important to remember that, in the case of marijuana, the bubble burst as it will put more obstacles to their legalization. In particular, due to the consequences that they bring in the illegal sales of the product. But this is not the case of Bitcoin. The criptomoneda does not depend on any approval from the government thanks to its decentralized nature. In addition, BTC is not a product but a medium of exchange. For these reasons, the majority of the members of the community cryptographic decided just to ignore the warnings of Peter Schiff. The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.

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About the author

Caroline W.

Caroline W.

Caroline is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2018, she joined CurrencyMarket24 as a writer.

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