Peter Schiff, Head of Euro Pacific Capital and critic of Bitcoin (BTC), has predicted a worldwide move from fiat currencies to digital alternatives.
In an interview with Mike Adams on March 17, Schiff voiced doubt about Bitcoin’s capacity to become one of the digital currencies in the future. Schiff thinks that digital gold will be one of the options likely to be adopted by global economies.
Schiff believes individuals will begin dealing in digital gold using either blockchain technology or private enterprises that tokenize the commodity. Due to the dollar’s fast depreciation, he said, the transfer to digital currencies will occur.
“Eventually, I believe the world will shift away from fiat currencies, and many people will resume doing transactions with gold. “I know there are some folks who believe they will utilize Bitcoin, but that’s not going to happen,” Schiff stated.
If the United States continues to combat growing inflation, Schiff cautioned that the dollar is likely to be devalued similarly to other currencies, such as the Argentine Peso.
Despite Schiff’s advocacy for a prospective move towards digital gold, the economist first argued that the precious metal had lost some appeal during the 2021 cryptocurrency bull run. Following a report by Finbold, Schiff remarked that investors’ neglect of gold resulted from their focus on Bitcoin.
Schiff’s pessimistic assessment of Bitcoin’s potential as a primary digital currency is consistent with his long-held objections to the pioneering cryptocurrency. The banker has urged investors to liquidate their Bitcoin holdings, stating that BTC would likely revert to zero.
Schiff had previously argued that the surge was a bubble that would ultimately break and that the considerable decline experienced in 2022 resulted from a significant pump-and-dump operation. He stressed that the market saw a value increase, but investors failed to recognize the following fall.
Schiff has also predicted a further worsening of the global economy, which would severely influence the already troubled U.S. financial industry. Finbold said that Schiff cautioned investors to prepare for a “larger collapse” of the nation’s financial sector.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.