Investor Peter Schiff is warning once again about Bitcoin’s massive speculative bubble. Schiff, who is well-known for predicting the 2008 financial crash, is saying it’s those who are buying in now will be the most vulnerable when Bitcoin hits $0.
“People who got it years ago, even people who got it at the beginning of the year have the opportunity to cash out and make a lot of money. But people who are buying it at these prices or higher prices are going to lose practically everything,” Schiff told RT International Channel. Bitcoin is speculative bubble set to burst at any time, and when it does, many will lose everything.
Schiff’s main concern with Bitcoin echoes that of many preppers, including Mike Adams, the Health Ranger. “These currencies are going to trade to zero or pretty close to it when the bubble pops,” predicts Schiff. “Right now, the only reason why people are buying bitcoin is because the price is going up. When it turns around, they are not going to sell it for the same reason. There is no value in bitcoin, you can’t use it as money,” Schiff points out. “It’s too slow, too expensive and too vulnerable.”
It also doesn’t physically exist in the way gold and silver do. According to Schiff, there is a problem with fiat currencies. However, there are 1,300 digital currencies with massive inflation. “Even bitcoin itself has spun off bitcoin cash, bitcoin gold. There is no limit to supply of bitcoin-branded worthless tokens that can be created,” he said. But as soon as the price begins a downward trend, Bitcoin will implode.
In the video below, Schiff discusses whether or not buying into Bitcoin is like buying a lottery ticket.
“The only value in the cryptocurrency now is the fact that it’s going up,” Schiff says. “And people are buying it because they believe they’ll be able to sell it to somebody else who also thinks it’s going to keep going up because he can buy it, he can sell it to somebody else who has the same outlook. But as soon as the currency really starts to decline, it’s gonna implode and eventually, it will go down to its true value…I think the ultimate value is going to be $0.”
Schiff says cryptocurrencies are also fiat currencies and stands by his assessment that gold is a real alternative to the mess created by all of the fiat currencies (including the United States’ dollar) which have no real value in the end.