Crypto critic Peter Schiff has once again issued a warning about the future of Bitcoin (BTC), citing its poor performance in the second quarter of the year. According to Schiff’s post, Bitcoin’s value has plummeted over 15% as Q2 comes to a close, in stark contrast to gold, which experienced a 4% gain during the same period.
Peter Schiff Once Again Slams Bitcoin
Schiff points out a significant difference between the two assets to warn investors who may have transferred their investments from Gold Exchange-Traded Funds (ETFs) to Bitcoin ETFs. He highlights that those who made the switch are now around 20% less well-off. This pattern has strengthened Schiff’s enduring doubt about Bitcoin’s potential as a trustworthy investment compared to conventional assets such as gold.
#Gold closed Q2 with a 4% gain. #Bitcoin still has two more days left to trade, but as of now it’s down over 15%. Investors who sold gold ETFs at the end of Q1 to buy Bitcoin ETFs are 20% worse off. The bad news for those investors is that it will likely get much worse from here.
— Peter Schiff (@PeterSchiff) June 28, 2024
The decline in Bitcoin’s value, Schiff argues, exposes the cryptocurrency’s vulnerability and volatility. He believes that the digital asset’s recent performance is a clear indication of its speculative nature, making it an unreliable store of value.
Schiff’s warning comes at a time when the debate between Bitcoin and gold as alternative investments is intensifying. Meanwhile, Bitcoin experienced a decline from $71,000 and is trading at $60,956.95, marking a 14% drop.
Peter Schiff Highlights Bitcoin Post-Halving Flaws
In April, Peter highlighted what he perceived as fundamental flaws in Bitcoin’s role as a digital currency, focusing on the substantial increase in transaction costs and processing times. He pointed out that completing a Bitcoin transaction costs around $128, a significant rise from previous levels. Also, he noted a delay in transaction processing times, with transactions taking over an hour to confirm.
These developments, according to Peter, render Bitcoin impractical for everyday transactions, challenging its viability as a digital currency. “The cost to actually use Bitcoin as a currency is prohibitively high for almost all transactions. It is a failure,” he said. However, the crypto community expressed skepticism. Users pointed out inconsistencies in Peter’s statements and questioned the reliability of his sources.
Peter Schiff Advises Investors Against BTC Holdings
Right after the bear market of 2022 which led to the loss of over $2 trillion from the cryptocurrency ecosystem, Schiff encouraged investors to sell off their BTC holdings. This was at the time when the coin was trading at $19k having recovered slightly.
By the end of the first quarter of 2023, Bitcoin had risen considerably compared to its price in January. This time around, the crypto critic predicted that there would be a market downturn where BTC would take the list. He also emphasized that when this eventually happens, precious metals like gold will be on an upward trend.
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