US Economist Peter Schiff Calls Bitcoin a ‘Failure’ Due to Transaction Costs and Time
American economist and gold enthusiast Peter Schiff has once again criticized Bitcoin, labeling it a ‘failure’ as a digital currency. His comments came shortly after the Bitcoin halving event, which sparked discussions about the cryptocurrency’s potential. Schiff argued that the cost and time required to complete a Bitcoin transaction make it unsuitable for digital currency purposes.
Schiff argued that the cost and time required to complete a Bitcoin transaction make it unsuitable for digital currency purposes.
According to Schiff, the cost of completing a Bitcoin transaction has risen to $128, with a processing time of over an hour. He believes this makes Bitcoin impractical for everyday use, such as purchasing small items or transferring funds quickly. Schiff’s criticism highlights the challenges Bitcoin faces in terms of scalability and efficiency, which are crucial for a digital currency aiming to replace traditional payment systems.
While some commenters pointed out that shipping gold securely around the world would be even more costly and time-consuming, Schiff dismissed this argument as irrelevant since gold is not currently used as a currency. However, this comparison raises important questions about the role of gold and Bitcoin in the modern economy. As central banks and investors increasingly turn to gold as a safe-haven asset, Bitcoin’s ability to compete as a store of value and medium of exchange is put to the test.
Schiff has long advocated for gold as a superior store of value and has criticized Bitcoin’s status as a safe haven asset. He has also predicted a “catastrophic crash” for Bitcoin due to the influx of BTC into spot exchange-traded funds (ETFs), making it more vulnerable. This prediction is based on the idea that BTC ETF buyers are unlikely to be true believers in Bitcoin’s potential, but rather speculative investors seeking short-term gains.
Despite Schiff’s bearish views, Bitcoin has managed to climb back above $65,000, indicating a 1.76% increase on the day and a 2.45% gain on its monthly chart. This resilience demonstrates the complexity of the cryptocurrency market, where prices can fluctuate rapidly based on a variety of factors, including investor sentiment, regulatory developments, and technological advancements.
The debate between Bitcoin and gold enthusiasts continues, with each side presenting its own arguments. While Schiff sees tokenized gold on a blockchain as a viable option, Bitcoin supporters believe the cryptocurrency has the potential to revolutionize digital transactions and provide financial inclusion for the unbanked. As the cryptocurrency market continues to evolve, it remains to be seen how Bitcoin and other assets will perform in the long term.
Disclaimer: Conduct thorough research and consider multiple perspectives before making investment decisions. Cryptocurrencies, stocks, real estate, and other assets carry risks, and capital can be lost. It is essential to approach investing with caution and a clear understanding of the market. As the global economy navigates the challenges of inflation, geopolitical tensions, and technological disruption, the role of alternative assets like Bitcoin and gold will continue to be a topic of discussion and debate.
