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.
i hope bit coin investers get rich. everytime the schiffster bitches about cryptos it skyrockets higher.
Buying something that does not really exist is damn foolish.
Regarding existence – When you buy or trade paper money, are you buying the money, or the imagined value of the money?
The value of anything exists only within our minds, simply because it’s something we want.
Money, currency is a medium of exchange of other things we value, its easy to trade vs half a pig for a backrub.
We EARN the money at this point at which time mine is immediately converted to cash that goes in my pocket which I can control. Best I can do with the way things are. I’m not going to BUY something that can be stolen from me in an instant such as crypto.
Yeah, the value of that glass of water I just drank exists only in my mind. . .
Agreed Menzo… The larger problem is that we all buy into the concept that any currency has some intrinsic value. Even gold, silver, platinum, rare earths…. only have a value in the utility of those metal’s properties or as an ornamentation due to scarcity as found able to be extracted on earth. In a SHTF situation….. none of the aforementioned will be worth much of a damn. Who here would trade bullets, beans or bandaids for a coin or bag of …. essentially dust/ore? Even Jack of the Beanstalk ended up with one hell of a bean plant.
Value, true value, real value, any value whatsoever never consists of anything more than people’s opinion. Failure to understand this is a mental defect.
yess rrrr, but you leave out the most crucial part of what value is. Actually 2 things – what one person alone considers of worth versus what 2 or more do in terms of trade. Post ‘it’ in SHTF, you come to me to barter using any currency or ‘coin of the realm’ the odds are quite high you’ll not acquire anything I have to offer for sale. And as for Bitcoin, if you offered me some ‘key’, I’d probably shoot you as an act of mercy to put you out of your misery.
Like this guy, encore…
Bitcoin Bob had a big stash
Put all his eggs in cryptocash
Riding the wave up to the top
He thought for sure it never would stop
“I will live just like a king
With big mansions full of bling”
Although it was made from thin air
In his blindness he didn’t care
With global tensions on the rise
An EMP hit by suprise
It took down all the internet
With shaking hands he began to sweat
Sure enough it disappeared
Something that he never feared
On his couch full of tear stains
With his gun blew out his brains……
And a Merry Christmas to All, and all a good night…
listened to Schiff quite a bit back in 2008-2012 and for all his shilling gold and silver, gold is treading water and silver is less than half its peak in 2011. Sitting on a huge stack and it will probably be a generation before it hits the old peak. Bitcoin did what gold and silver were supposed to do and in the era of internet, things have changed.
There are better options than bitcoin anyway. Verge doubled in the kast 24hours.
Who CAN’T look at the meteoric rise in cryptos and see a bubble?
Schiff is hawking his own wares, but it doesn’t change the fact that cryptos can be taken to 0 with a click of a mouse.
Please invest in my digital tulip bulbs. NO WAY you can lose!! TRUST ME.
I have yet to hear anyone talk about creating the wallet and register with the coin exchange. This “exchange” wanted my drivers license number. That sent up a red flag. To my gut feeling this will end badly for us all. The power to see everything u do or buy down to that cup of coffee removes the last of ur privacy. You are caught up in the matrix. Do not think for one moment the criminals called our governments aren’t frothing at the mouth because as was pointed out and not really considered in the broader sense is complete control of ur money. Even Putin conceded many taxes cannot be levied because Russians barter heavily with cash or commodities. See the appeal? The one guest may be right, the blockchain may be hear to stay, but for nefarious uses I believe.
Peter Schiff sounds like a fool here. He unfortunately has a cognitive barrier here and doesn’t see the contradictions in his comments.
Peter Schiff is still peddling his fools gold.
We’re doomed – buy my gold…
I see he found my old tie from 15 years ago.
“I think the ultimate value is going to be $0”
Says the guy with vested interests in gold, fiat and the crumbling system of control that has brought this country to it’s knees.
You’re on the wrong side of history bud. Peter Schiff and people like him that poo-poo bitcoin either, A) Don’t understand the technology behind what they are criticizing, or, B) Don’t want to give up the strangle hold of control that they currently feel slipping away.
This is the future. And those that say “It’s a one-world currency, the mark of the beast” etc; look into it. It is DECENTRALIZED. There is no Bitcoin INC., no bank, no IMF, no Federal Reserve. It is owned by the people and cuts out the middle-man and his rapacious fees. And THAT is why those entrenched in the current control system want to see it destroyed.
There’s a quote that goes something like “Nothing guarantees a man’s continued ignorance of something, as when his LIVELIHOOD depends on him remaining so”
Schiff is 100% dependent on (YOU AND HE BOTH) remaining ignorant.
For all you “educated”, “sophisticated”, “really, really smart” bitcoin groupies…..
Tell me exactly what your bitcoin “investment” will be worth when the grid goes down? Just exactly WHAT will you have in your direct possession? How will you purchase ANYTHING with your digital currency when there is no Internet?
P.T Barnum was right.
The same that it will be worth when the sun goes nova. The value of bitcoin will be zero when the investor is dead, when humans go extinct, when Earth’s magnetic poles shift, when Jesus comes, when Jesus goes; you name it. In the meantime it will have whatever value humans think that it has. I’m betting that as far as my lifetime is concerned, bitcoin will be more relevant than whether the sun is going to go nova.
If you spend all of your time trying to protect against every possible negative outcome, you may as well lie down and stay there, because that is impossible. What ultimately matters is that you do SOMETHING! In this perspective owning some bitcoin makes sense. Always doing nothing only guarantees failure and poverty. But you knew that, right?
What will U.S. Dollars be worth if the grid goes down? How much do you have on hand? Most people use Debit and Credit. Even if you keep a couple grand in cash at home like I do, you will have a limited time to spend it. Unless the store you want to spend it at has a backup power, or they are a small store and not a big chain and willing to use a calculator to add up your purchases. It just paper. The stuff in the bank is gone too. What is the difference in U.S Dollars and Bitcoin with this question? Not much really. If you FRNs in your wallet you may dupe someone into taking them, but not for long.
Cybersecurity guru John McAfee has pledged to “eat his own dick” live on national television if Bitcoin doesn’t reach a value of $1,000,000 by the year 2020.
“””It is DECENTRALIZED. There is no Bitcoin INC., no bank, no IMF, no Federal Reserve. It is owned by the people and cuts out the middle-man and his rapacious fees”””
BUT, for how long???:-)
If someone knows of which he speaks (when the subject is ZERO VALUE), it would be Schiff.
Hyperbolic blowhard trying to remain relevant…speaking to the dimbulbs that continue to bury their head in the past.
Well, it sure seems to be tanking now? Wall Street is playing it with the futures contracts, just like they do with gold and silver. In the end there will be only one crypto currency and Bitcoin is not it.
Peter Schiff knocks anything and everything that isn’t gold. He has been spouting for years how gold is going to soar upwards of $10,000 per ounce. Funny how the more Shiff spouts gold goes backwards.
Gold has no intrinsic value either. It is not considered a currency, by any nation. The “value” of gold ebbs and flows, just like anything else.
Like so much else that is printed on this, and other such preper sites, call claiming for the past five years that everything is going to crash…To date, they have all been very, very wrong in their predictions.
” The “value” of gold ebbs and flows, just like anything else.”
The value of gold is heavily manipulated with paper gold, not real gold. Peter Schiff is thinking that one plus one equals two. The reality a lot more gold is sold by GLD then they have.
“To date, they have all been very, very wrong in their predictions.”
And how / why is that occurring? Money, from nowhere has circumvented the bedrock core of the supply and demand of capitalism. Magic works for a while. A 24,000 DOW is not there simultaneously with 40 million on food assistance, up by 50% from 2008. No sane person can believe that this is not trickery and ultimately unsustainable.
Welcome to the BB. Your new. I see a lot of new people here. I find that in itself very interesting.
You guys that are bagging on Schiff here sound just like the ones who thought he was crazy back in 2007 when he predicted that the mortgage loan bubble was going to collapse.
Turned out he was right and all the guys who said he was a fool ended up being the fools.
Common sense will tell anyone with half a brain that ALL fiat currencies eventually end up collapsing and assuming their intrinsic worth. So…what is the intrinsic value of a digital currency? Exactly nothing.
I wonder how many of you bitcoin groupies will end up jumping out of windows when this 21st century version of tulip bulbs finally gets revealed for the scam that it is?
What you have said is not true.
The ability to give someone something in payment, which they are willing to accept, is itself valuable.
As soon as the hard drives crash that “ability to move” is pretty much limited to a wheel barrow.
rrrr – you try to pay me for a labor task in Bitcoin and not something I can hold in my hand, you’re going to get shot. And it ain’t going to be some XBox blaster I use. Real steel, real brass, real lead. Your Bitcoin has exactly the same value as your 10,000 ‘Friends’ on Facebook.
Never understood the Bitcoin thing and still don’t.
That was a fantastic debate. I really liked it. In my opinion, the great thing about the crypto currency is the open ledger of block chain. I think Schiff is missing the point and I think the other guy there is trying to defend the crypto on the wrong basis. I think it should be defended based on its potential as a means of recording and exchanging value on an open ledger. Golds intrinsic value isn’t why people used it for money. People used it for money because it was very difficult to inflate it or cheat it. I think the fact that it also has other uses is secondary, when considered a store of value. And a store of value is only useful if the value can be exchanged and traded. Ultimately, whatever you use for “money” or “currency” is not about the intrinsic value of the medium of exchange, but about the ability to exchange the value of your time, invested in a good or service, for other goods and services.
In essences, what i am doing is recording my effort in gold, dollars, or bticoins so that i can exchange it for something that someone else invested their time in.
I think we might all agree on that, yes?
I think it is possible for Bitcoin, or other cryptos, to manage that ledger. I think the bigger issue is this.
Sooner or later you will have to expose yourself in an exchange. You might have total financial privacy on the crypto ledger, but you will have to spend it on physical goods or services. At which point there will be a UPS
(posted before i finished)
At which point there will be a UPS delivery to your house. A record of products shipped to you from amazon. a record of taxes, fees, licensing, etc to the government. A record of all the physical things you do in the world that can be tracked. so you might be able to hide the digital money but you might not be able to hide what you spend it on.
Ultimately you will be exposed at bottle necks like exchanges, or points of contact with real world goods and services.
I do however, think that it might go a long way to killing the fed, but it will have to be in combination with a better informed, educated, and moral society.
Peter Schiff sells precious metals for a living, and it is obvious that money going into cryptocurrencies is money that Peter Schiff would prefer went into his own pocket. There is not anything he would not do to stop bitcoin, and that is why he is yelling “CRASH” as loud as he can. Of course he won’t admit it, and he’s good at denying. But the reason he’s yelling “CRASH” is because it’s threatening his business.
I like silver a lot better because it DOES have actual value as it is used in hundreds of industrial and medical applications. From solar to bomms, electronics, you name it. Besides it is extremely undervalued. And it has a finite amount available.
Somehow bitcoin is acquired through “mining” which requires a tremendous amount of computing power. Conversely computing power is growing virtually exponentially doubling every 18 months according to Moore’s Law. From my ignorant perspective its only a matter of time, and not that long at that, that bitcoin and its likes crash.
Should probably rename this website shitbitcoinfan . con
I see shitcoin is at $12902.23 this morning off of its high on Monday of Dec 18th $18842.53. That high coincided with its listing/opening on the MERC futures exchange.
No surprise to see its price top out there, there was a lot of hype (aka PUMP AND DUMP).
All this shitcoin hype is ridiculous, it makes people look silly.
Just check past history of Bitcoin……
Oh yeah….any of you suckers get burned on this?
Still want a piece of the magic? Uh……okay.
Glad to see some intelligent and civil discourse on crypto currencies.
imo – They are here and here to stay. Not sure if the founding coin – the Bitcoin, will stay atop the heap or not. Don’t think it matters quite honestly.
It will come down to the main ones be exchanged ubiquitously for purchases of goods and services.
I remember back packing through Europe a million years ago in the Eighties. Had to exchange my US dollars for AMEX Travellers checks in the States, then go to currency exchanges in whatever country I was in and buy whatever the local currency was. Along the way getting scalped on exchange rates. Then I had to wear a money belt to make sure I wasn’t robbed by the street urchins.
Ahhh, the good ole days.
Soon I’ll be able to privately keep my wealth in the crypto(s) of my choice on my cold storage device and pay with my phone or computer. Don’t need or want the banks or the governments prying eyes or advice or authority to spend my wealth.
Yeah I know the argument, when an emp knocks out the grid it’ll be worthless.
So will be the gold and silver I have as well. Can’t use or eat the life, car, health, disabilty insurances I’ve paid into all these years. Arguably my investment and bank accounts may be impossible to access too.
It’s about diversity to mitigate risks to any one thing that could dramatically impact your life.
If all heck breaks loose then I’ll be more ready than most of the sheeple with plenty of preps and lead. Hope to never need them though.
2018 will be a tremendous year for some crypto currencies / alt coins. Schiff may not be a believer and may not buy. That’s ok with me. There will be 10’s of millions in the US and 100″s of millions around the world that will be buying though.
It’s better to ride the wave then get knocked over by it.
It’ll be volatile at times, like the last few days have been, but it’s still early enough to recognize gains. 2017 was just inning 2 in a baseball game.
2018 will be innings 3, 4 & 5 when the heavy hitters start swinging for the fences.
Good luck to all and Merry Christmas
Put your money where your mouth is, Pete, and short BTC…
Lol!! Bitcoin is a threat to the racket these clowns in suits have run for decades.
Don’t know nothing about Bitcoin, but what did it do today? Wonder if Peter could be right! Trekker Out
Nothing is impossible
Cryptocurrencies have a problem… they is dependent on certain technologies, or they are unusable. The main three pieces of tech needed to trade cryptocurrencies are a network connection, a computer and electricity. Without these 3 items, cryptocurrencies are not usable. Today there are 1.2 billions people living without electricity. That is about 1/6 of the world that can not use cryptocurrencies. If you do not have a network connection, how can you trade the data? Cryptocurrencies are always dependent on some type of technology in order for them to be used. Also, as a side note, how come the fees for exchanging cryptocurrencies are never spoken about during these conversations?