Gold bug and renowned economist Peter Schiff recently commented on the potential future of Bitcoin, predicting that its value could soar to $10 million under certain economic circumstances.
Schiff believes that such a scenario is conceivable if the U.S. dollar experiences a collapse similar to that of the German Papiermark in the early 20th century.
After World War I, Germany experienced hyperinflation, primarily during the years 1921-1923. This hyperinflation was so severe that the value of the Papiermark (the German currency at the time) dropped drastically, rendering it almost worthless.
It’s important to note that Schiff’s statement is hypothetical and presents an extreme scenario.
Selective optimism
Schiff also engaged in a discussion about Bitcoin’s performance relative to gold. He pointed out that regardless of Bitcoin’s price fluctuations, its proponents often compare its growth favorably against gold.
Schiff illustrated this with a hypothetical scenario: even if Bitcoin’s value dropped to $100 in 2031 while gold rose to $10,000, Bitcoin supporters would still emphasize that Bitcoin had increased 100-fold in 20 years, compared to gold’s 5-fold increase.
This comparison, according to Schiff, demonstrates the selective optimism among Bitcoin enthusiasts.
Skepticism toward Bitcoin’s intrinsic value
Schiff has consistently expressed skepticism about Bitcoin’s intrinsic value and the investment vehicles associated with it, such as Bitcoin ETFs.
He described Bitcoin as a product with no inherent value, whose worth is sustained by the collective belief in its value and limited supply.
Schiff also criticized the coverage of Bitcoin ETFs by mainstream media, pointing out that many analysts who are now cautioning against these ETFs did not offer such advice prior to their launch.
He also warned that investors in the various spot Bitcoin ETFs might face severe losses.
