Peter Schiff, a prominent economist and gold bug, has launched a new attack on Bitcoin, calling it a cult and a nothing. He also dismissed the arguments of Bitcoin advocates, such as its utility and scarcity.
The global strategist at Europac is no stranger to criticizing Bitcoin and its supporters.
He has been a vocal opponent of the cryptocurrency for years, arguing that it lacks intrinsic value, utility, and durability. He has also predicted that Bitcoin will eventually crash to zero.
In a recent post on X (formerly known as Twitter), Schiff renewed his attack on Bitcoin, claiming that it had no purpose and its advocates were like a cult.
He wrote:
No one needs Bitcoin. So, people only buy it after someone else talks them into doing so. Then, once they buy, they immediately try to convince others to buy too. It’s like a cult.
Schiff made these remarks after commenting on the statements of Mike Novogratz, the CEO of Galaxy Digital, who appeared on CNBC’s Squawk Box.
Novogratz said that Bitcoin “has always been an instrument that is sold, not bought” and that institutions were “getting people in the first time and explaining to them what it is.”
Schiff disagreed with Novogratz’s view, saying that Bitcoin was not an instrument but a “collectible digital token.” He also said that there were other ways of losing money besides buying Bitcoin.
Bitcoin Is Not a Resource
Schiff also challenged the notion that Bitcoin was scarce and valuable because of its limited supply. He argued that Bitcoin was not a resource but a “nothing.” He tweeted:
Bitcoin is not a resource. It’s nothing. There are also 2.1 quadrillion Sats. So there is plenty of nothings to go around.
Schiff was referring to the smallest unit of Bitcoin, called a satoshi or sat, which is equal to 0.00000001 BTC.
There are 100 million sats in one bitcoin, and the total number of bitcoins that can ever be created is capped at 21 million. Therefore, the total number of sats that can ever exist is 2.1 quadrillion.
Schiff implied that this large number of sats made Bitcoin less scarce and valuable than its proponents claimed. He also compared Bitcoin unfavorably to gold, which he said was a real resource with intrinsic value and utility.
Bitcoin Has No Utility
Schiff also dismissed the argument that Bitcoin had utility for people living in countries with high inflation or limited access to banking services.
He responded to a user who said that owning gold in such situations would be risky and impractical while owning Bitcoin would be safer and easier.
Schiff said:
Owning gold would put a target on their back? How? If you own gold you don’t have to tell anyone or carry it around with you. You can store it securely and access it when you need it. Bitcoin has no utility. It’s just a speculative asset that people gamble on.
Schiff’s comments sparked a heated debate on X, with many users challenging his views and defending Bitcoin.
Some users pointed out the advantages of Bitcoin over gold, such as its portability, divisibility, verifiability, censorship resistance, and programmability.
Others accused Schiff of being biased and ignorant about Bitcoin, noting that his son Spencer Schiff was a Bitcoin believer and investor.
Spencer Schiff has often clashed with his father on X over their differing opinions on Bitcoin and gold.
