Economist and Bitcoin critic Peter Schiff expressed his opinion that the concept of a 21 million supply cap for Bitcoin is merely an illusion. He argues that changing the denomination of Bitcoin would not affect its underlying economics.
Illusion of Bitcoin Scarcity
Schiff believes that Bitcoin's scarcity is perceived rather than based on real limitations. He posits that changing the total quantity of Bitcoins from 21 million to 21 billion would not alter the real economics, as the number of satoshis (the unit of Bitcoin) would remain the same. "What if Bitcoin’s supply was 21B instead of 21M?" he stated.
Bitcoin as a Risk Asset
Schiff categorizes Bitcoin as a risk asset that shows correlation with technology stocks rather than being a safe haven. He pointed to the rise of stocks like NVIDIA, indicating that Bitcoin has shown similar dynamics. He emphasized that "Bitcoin is a risk asset that has rallied with tech stocks."
Comparison with Gold and Silver
In the context of price comparisons between Bitcoin and gold, Schiff noted, "Gold has taken a temporary pause. Meanwhile, silver is beating Bitcoin." He also pointed out that investments in precious metals remain subdued as "investors are being distracted by Bitcoin."
Peter Schiff's stance on Bitcoin highlights important questions regarding the perception of scarcity in the cryptocurrency world and positions Bitcoin as a risk asset, emphasizing its correlation with broader market trends.
