A Dissatisfied ‘I Told You So’ From an Economist
Bitcoin’s highly anticipated spot exchange-traded fund (ETF) launch in the United States did not meet the lofty expectations set by the cryptocurrency community. This disappointment has led economist and vocal Bitcoin critic, Peter Schiff, to take a moment of self-satisfaction and emphasize his reservations about the leading cryptocurrency.
Comparing Bitcoin to Gold
Schiff frequently compares Bitcoin to gold, a traditional safe-haven asset. He argues that even if Bitcoin were to fall to $100 in 2031 and gold were to rise to $10,000, Bitcoin enthusiasts would still claim that Bitcoin has outperformed gold by a remarkable 100x over the past 20 years. Schiff’s point is that such comparisons lack context and can be misleading.
To contextualize his argument, Schiff references the German currency, Papiermark, which experienced hyperinflation after World War I, rendering it virtually worthless. The government replaced it with the Retenmark and later the Reichsmark. This historical comparison serves as a cautionary tale about the potential volatility of currencies and the importance of stability.
Latest Bitcoin Performance
At the time of writing, Bitcoin is being traded at $42,256, experiencing a modest 1% decrease for the day. However, Bitcoin has shown a 3.26% increase over the previous week and a 1.34% gain on its monthly chart, according to data retrieved by Finbold on January 29th.
This recent performance leaves investors and enthusiasts to ponder the long-term prospects of Bitcoin and its ability to prove its critics wrong. While Schiff may revel in the current state of affairs, the cryptocurrency market remains highly unpredictable, and only time will reveal Bitcoin’s true fate.