- Peter Schiff went on Twitter to make his usual negative comments on Bitcoin.
- Schiff says that Bitcoin isn’t a safe-haven asset now, neither is it a store of value, nor even a proper currency.
- Schiff has a small point that Bitcoin failed to prove itself as a safe haven since it dropped such a large value during a market downturn.
Bitcoin critic, Peter Schiff went on Twitter to make his usual negative comments on Bitcoin, this time talking about how Bitcoin was a creation of the 2008 financial crisis to become a safe-haven asset during the next large financial crises.
Bitcoin was created after the 2008 financial crisis and hodlers always assumed that it would be the safe-haven of choice during the next. Looks like they assumed wrong. If #Bitcoin is not a currency, not a store of value, and not a safe haven, then what is it and why own it?
— Peter Schiff (@PeterSchiff) March 9, 2020
Now that the coronavirus outbreak is on the line, and financial markets are suffering another crisis, Schiff says that Bitcoin isn’t a safe-haven asset now, neither is it a store of value, nor even a proper currency. He ends his hateful tweet rhetorically asking what Bitcoin even is, and why anyone should own it.
The entire coronavirus outbreak has been having a gravitational effect on the financial market as stock prices are breaking down; the prices of most assets are on the low. Many believe the market panic is mostly due to the exaggerated media coverage of the virus, reporting it to be much worse than it is.
Still, the truth cannot be denied that the entire globe is panicking, and financial markets are reflecting this. Bitcoin has also shown the stress of the outbreak. The prices fell from $10,000 at the time of the virus reveal, to a current low of $7,945 as prices plummeted over 20% over the past couple weeks.
Schiff has a small point that Bitcoin failed to prove itself as a safe haven since it dropped such a large value during a market downturn. But Bitcoin is still a good store of value and has many use cases that even trump traditional currencies.
Although in this particular scenario, Bitcoin is proving to be lesser of a safe asset, in the long run, the cryptocurrency has mostly bought relatively large profits to investors. Many market analysts also expect Bitcoin to bounce back from the outbreak downtrend soon and shoot back to its highs of over $9,000, but this is yet to be seen.
Peter Schiff has had a rough history with Bitcoin, being the strong gold proponent that he is. Bitcoin has been a strong competitor, if not a successor over mineral-assets like gold, and Schiff has failed to realize the potential of Bitcoin in the global market.
Bitcoin brings several innovations to traditional forms of currency, including fast transaction times, transparency, security, and decentralized operation. There also lies the benefits of being a digital currency with accessibility and convenience from anywhere in the world.
Schiff has been known to take frequent jabs at Bitcoin, which many assume is a tactic to spread negative market sentiment to influence the price of Bitcoin. It is yet to see how cryptocurrencies and other assets are going to cope in the time of the current financial crisis.