Replace 'Dollar' with Bitcoin?...Peter Schiff Mocks: "Laughingstock"

▲ Bitcoin (BTC), Dollar (USD)

Strong criticism has been raised against the claim that Bitcoin (BTC) will replace the US legal tender, the dollar. An economic expert, who has argued for the uselessness of virtual assets, completely denied the possibility of Bitcoin's monetary function, ringing an alarm bell for market optimism.

According to a report by the economic media outlet Benzinga on April 30 (local time), Peter Schiff, president of Euro Pacific Capital, sharply criticized the idea of Bitcoin replacing the dollar, calling it "nothing more than a laughingstock." Schiff pointed out that Bitcoin has no intrinsic value whatsoever and has not solved the volatility issue as a means of payment.

Schiff diagnosed the virtual asset market, including Bitcoin, as nothing more than a speculative bubble that fails to create real economic value. Schiff emphasized, "Unlike gold, Bitcoin has no physical use and lacks credibility as a store of value." He particularly stated that the argument that Bitcoin can replace the fiat currency system issued by central banks is an illusion that does not align with economic logic.

He also raised his voice in criticism of the scarcity claimed by virtual asset proponents. Schiff analyzed that scarcity in a digital environment is merely an artificial setting and is fundamentally different from the scarcity of natural resources like gold. He explained that Bitcoin's limitations would become even clearer in an environment of decreasing market liquidity and continued interest rate hikes.

It was also mentioned that the rise in Bitcoin's price stems not from technological innovation or proof of value, but from mere market frenzy. Schiff warned that investors are focusing solely on price volatility while ignoring the intrinsic value of assets. He emphasized that for true financial system stability, an economic system based on real assets, not volatile virtual assets, must be maintained.

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