Peter Schiff Warns $1 Trillion Crypto Wipeout as Bitcoin, Ether Slide
Economist and gold advocate Peter Schiff is sounding the alarm on an impending collapse in the crypto market. Schiff, who founded Euro...
Quick overview
- Peter Schiff warns of an impending collapse in the crypto market, predicting a crash in Bitcoin and Ether.
- He argues that gold is becoming a more reliable investment option, overshadowing cryptocurrencies.
- Schiff advises crypto investors to sell their holdings and invest in gold to avoid potential financial ruin.
- Despite Schiff's warnings, crypto supporters argue that Bitcoin's fixed supply and decentralization offer long-term advantages.
Economist and gold advocate Peter Schiff is sounding the alarm on an impending collapse in the crypto market. Schiff, who founded Euro Pacific Asset Management, is predicting a crash in Bitcoin and Ether that could lead to widespread bankruptcies, defaults, and layoffs across the sector.
Posting recently on social media platform X, Schiff pointed out that the surge in gold prices has exposed the weakness of cryptocurrencies as a reliable investment option. “Gold is the biggest threat to bitcoin” Schiff declared on October 19 – and for good reason; the notion that Bitcoin is the ” digital gold” has been debunked as investors flock to physical bullion instead.
Schiff’s top warnings:
- A crash in Bitcoin and Ether is threatening
- The altcoin markets could collapse
- Crypto investors are at risk of systemic failure
As Gold Surpasses Bitcoin as a Hedge
Schiff is pinning the change in investment priorities on gold’s reputation as a safe haven against inflation and economic instability. “Gold is more likely to hit $1 million than is Bitcoin“, he said on October 16, highlighting the contrast between the two assets.
The economist also tore into the hype surrounding Bitcoin, pointing out that market enthusiasm has reached a boiling point. He advised crypto holders, “HODLers – sell your ‘crypto fool’s gold’ and buy the real thing while you still can – or you’ll end up broke.” And while the market may be in a bear run for Bitcoin right now, according to Schiff, it is still far from reaching it’s final stage, with no relief in sight.
Key takeaways for investors:
- Gold can offer a tangible safeguard against inflation
- The volatility of crypto is creating more systemic risk
- Don’t hold your breath for Bitcoin’s recovery
Crypto Supporters Try To Push Back
However, and despite Schiff’s dire warnings, proponents of the cryptocurrency are countering that he’s missing the point. They say that Bitcoin has several fundamental advantages over traditional safe havens, including a fixed supply, decentralisation and portability.
The fact that gold’s rally doesn’t diminish Bitcoin’s potential long-term value as a hedge against fiat currency devaluation is also being pointed out. They also note that historical patterns show downturns often come before big rallies.
Arguments for crypto resilience:
- A limited supply of Bitcoin means there’s always going to be a demand
- Decentralisation means digital assets aren’t beholden to any government
- Market corrections often happen before the real growth cycle kicks in
Schiff’s warnings are, at the same time, highlighting a growing tension between traditional investment options and new digital assets – which will be a pivotal moment for investors trying to navigate an increasingly volatile financial landscape.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save