The BTC year 2019 is slowly but surely coming to an end after many ups and downs. One of the most discussed topics for sure was the upcoming Halving in May 2020. The event reduces the block reward for miners from 12.5 to 6.25 BTC. This effectively doubles the cost of mining a BTC overnight, which is why many predict that this will initiate the next parabolic growth phase for the course. But not everyone is so convinced of the halving. Well-known Bitcoin critic and gold advocate Peter Schiff gives his opinion again in an interview and explains why he believes the halving event is irrelevant in the long term.
The BTC computing session with Peter Schiff
In a yesterday published interview between Kitco reporter Daniela Cambone and economist, author and stockbroker Peter Schiff, he passionately substantiated his opinion that BTC was worthless and therefore doomed to fail in the long term.
When the reporter spoke of the upcoming halving, Schiff had only a tired laugh and was not very enthusiastic. In his opinion, the event will not change the long-term value of Bitcoin. The gold fan justified this with a simple calculation: “Half of nothing is still nothing”.
BTC price has passed its zenith
Contrary to the widespread opinion that BTC could achieve a significant long-term price increase through halving, Schiff is convinced that there will be no further rally. Instead, the high had long been exceeded and the price damned to continue falling:
“I just think we’re in a bear market. Bitcoin peaked about two years ago. So the price of Bitcoin has dropped in the past two years, and I expect it will continue.”
The fairytale of institutional investors
The entrepreneur continued his criticism by clearing up, in his opinion, fairy tales about the Kings Coin. First, he denies the idea that institutional investors would ever be interested in BTC and would be willing to play with their customers’ money through a risky investment.
“You’ve been talking about it for years. I don’t think that will happen.”
Schiff’s all-round deal also included the question of whether Bitcoin could act as “digital gold” in the future and whether it was a good store of value. Of course, how could it be otherwise, Schiff thinks that BTC cannot save anything since there is nothing valuable to store in Bitcoin. The story about the Kings Coin as a store of value is anyway a kind of marketing invention for the advocates of the digital asset, since it was originally intended as digital cash.
Will Peter Schiff be right?
But how should one, as a Bitcoin prospect, deal with the comments of the CEO? Is ship right and BTC will die out or is it wrong (as it has been several times in the past)?
Of course, these questions cannot be fully answered at the current time. Only a review in a few years or decades will be able to answer this conclusively. But as with so much, the truth will probably be somewhere in the middle.
However, one thing is certain: Schiff is not entirely wrong with some comments, but is obviously completely wrong with others. So the main criticism of the investor is that BTC has no other use than a monetary one. In contrast to gold, the digital asset cannot be used as a denture, worn as jewelry or built into electronic devices. As far as ship is correct.
But admittedly, the gold price is only partly driven by actual industrial demand and largely by monetary use. His criticism of Bitcoin is worthless because it can only be used as a means of finance, so it is highly questionable. His statement in the above interview that institutional investors are not interested in investing in the digital asset is simply wrong. As we reported this year, the Crypto-Exchange Coinbase processes triple-digit millions every week for large investors who want to invest in BTC.