The name of Peter Schiff is now well-known even outside of the financial circles where he first gained international recognition. As a borderline celebrity from the world of finance, Schiff often shares his takes and views on the developing stories. Recently, he did the same for the crypto markets and especially bitcoin. His take on the whole space is less than enthusiastic, to say the least. Peter Schiff believes that worse is yet ahead and that the same downwards rollercoaster will never end.
Instead, the value of crypto will continue to slide down, especially when it comes to its biggest network of bitcoin. His view on the space is extremely negative and it comes at the perfect moment as the overall value of the crypto market slid back down after a short rally. As the famous investor brings a new round of pessimistic predictions, the cryptosphere, and its esports players, HODLers and many other involved individuals and organizations are trying to chart a course in the not very positive environment.
Bad and Worse
Peter Schiff believes that the chances of bitcoin going back to the 69,000 USD range are very small. Furthermore, he is certain that the new record values of BTC tokens might not be ever seen again. Instead, he sees the potential of a further decline, reaching back to 10,000 USD and going way down after that as well.
One of the key reasons for his stance is the certainty that the present level of prices as well as the August rally is nothing remotely sustainable. That, including things like the ability of ETH to rise some 70 percent in comparison to its lowest values is what he dubbed a sucker rally. Because of a total lack of sustainability, Schiff is positive that the rally is not just going to fail in its ability to sustain the present levels of support, but also plunge further down.
Sell and Sell Fast
While many in the crypto markets are hesitant about giving out gigs and clear-cut advice, Schiff is not one of them. He said that the big drop in value is just incoming and that anyone who made money from these digital currencies will be those who sold it when the signals pointed in that direction. He did consider that there are many who are still able to profit from these tokens, but those are the individuals who bought them five or six years ago. Yet, even they will be able to say that they made money after they sell them and get out of the market.
Otherwise, they will be just another name in a group of massive crypto users. That applies to both those who bought Layer 1 big cryptocurrencies like bitcoin but also those who got into smaller niche digital tokens or just smaller blockchain crypto networks. In Schiff’s view, all of this is symptomatic of pump and dump schemes. Over the years, influences of social media, regular celebrities and many more individuals and companies sought to promote digital currencies. But, at the end of the day, only those who will recognize the dump signal will be able to profit from digital currencies. Others, Schiff thinks, will be stuck with worthless coins and nowhere and no one will be able to exchange them for either goods, services, or fiat equivalent values.
The process of crypto investment has been something that is not exclusively focused on retail customers. Ever since 2018, a range of companies and individual entities deceived to invest in this digital currency ecosystem. Schiff had a take on those businesses as well. Previously, he criticized the leadership of MicroStrategy which invested over a billion USD into bitcoin. Some time ago, Michael Saylor said that their BTC investment was a clear home run for its shareholders. Schiff immediately asked on social media that if a loss of one billion USD is a home run, what does the same CEO consider being a strikeout. In his view, it is completely ridiculous that Saylor is claiming such things on an investment that was clearly not a success by any means so far.
Bitcoin has fallen drastically since they first bought it and the present purchases did not do anything to change that setup. Also, Schiff talked about cherry-picking purchases of bitcoin that Microstrategy did when the price was more positive. On those occasions, the company would have made money if they cashed out. But, they failed to do the same and thus are now hundreds of millions of USD down on the combined investment. The total purchase price has thus not been a success by any measures. Schiff went so far as to say that he believes that the stock price will reflect the same process and gradually leave MicroStrategy in a passion where they are a drastically smaller company than they were before the BTC purchases.
Believing in a Rebound
Schiff is definitely by no means a crypto believer. His predictions are both grim and very total in their assessment that the entire ecosystem is basically going to implode sooner or later. The assessment is laden with suggestions that this scenario will usher in the total fall. He just failed to say that BTC will then reach zero and become basically worthless. However, that is very indicative as well. Schiff is ready to say that BTC will reach below 10,000 USD, but not that the same token will reach zero. But, following his line of reasoning, why should it not reach the same worthless point?
Does the same financial expert believe that the actual value, the true value of bitcoin lies at a few thousand USD? If yes, why that number and why not 100 USD for example? Here, key evolution happened and allowed the crypto space to turn into something more. While it was easy to claim in 2018 that BTC will become worthless, it is not so easy to do now. That is why Schiff is stopping himself from saying what he likely deep down really believes.