Peter Schiff, an economist and gold enthusiast, has made some grim predictions regarding cryptocurrencies, notably bitcoin and ether. "The necessity to sell bitcoin to pay the bills will only become worse as the crisis develops," he said, adding that bitcoin is expected to drop to $20K and ether to $1K.
The gold bug Peter Schiff, the creator of Schiffgold and the senior economist and lead strategist at Euro Pacific Capital, has made some terrible predictions regarding bitcoin, ether, and the crypto industry in general.
Bitcoin appears to be on the verge of collapsing to $20K and Ethereum to $1K, he tweeted on Saturday... This dip isn't for you. You're going to lose a lot more cash.
In a series of tweets on Sunday, Schiff argued that when food and energy prices rise, many bitcoin hodlers would be compelled to sell to afford the costs. Bitcoin is not accepted at grocery stores or petrol stations.
No one needed to sell when Bitcoin plummeted during Covid, according to the economist. Hodlers received stimulus cheques and consumer costs were significantly lower.
As the crisis develops and many Hodlers lose their jobs, particularly those working for soon-to-be-bankrupt blockchain startups, the urge to sell bitcoin to pay expenses will only become worse, according to Schiff.
Most bitcoin proponents continue to dismiss all of Schiff's bitcoin and crypto projections, with many seeing his pessimism as a buy signal for BTC.
One Twitter user called it "perhaps the most consistently awful investing advice on public record." Another person urged Schiff to "look at the 5-year charts of BTC or ETH, then the 5-year charts of gold. Which one would you have preferred to hold? Which one would you like to keep for another five years?"
In addition, an increasing number of food stores and petrol stations have begun to accept bitcoin and other cryptocurrencies. In May of last year, Sheetz, a big Mid-Atlantic restaurant and convenience store chain, stated that it was the "first convenience shop chain to take bitcoin." Several convenience shops and petrol stations, notably Circle K, a large convenience and gasoline retailer, have installed two-way bitcoin ATMs.
While Schiff is gloomy about bitcoin, ether, and the crypto sector as a whole, many others are positive about the currency. Tim Draper, a venture entrepreneur, has increased his bet on bitcoin to $250,000. Senator Ted Cruz of the United States has stated that he is "extremely optimistic" about bitcoin and has a weekly BTC buy. Last week, Devere Group CEO Nigel Green predicted a bull run and a "substantial recovery" in bitcoin prices in the fourth quarter of this year.
Last month, JPMorgan stated that bitcoin had a "significant upside." Crypto has supplanted real estate as the global investment bank's "preferred alternative asset." Furthermore, according to a recent Deloitte poll, 85 percent of U.S. merchants think that accepting crypto payments is a top priority for them.
