Peter Schiff has once again attacked Bitcoin with some comments on his Twitter profile.
This time he defines it as a “bug”, but he doesn’t explain why it should be considered as such, and he calls “fake news” the hypothesis of a price increase in view of the halving.
Yesterday, before the price drop of tonight, he defined investing in bitcoin as a mistake, saying:
“Sure a small portion of young people who lack investment or real life experience have been taken in by the scheme. That’s hardly a surprise. Hopefully they will learn from this mistake, and they will have plenty of years left to make back what they lose”.
Sure a small portion of young people who lack investment or real life experience have been taken in by the scheme. That's hardly a surprise. Hopefully they will learn from this mistake, and they will have plenty of years left to make back what they lose.
— Peter Schiff (@PeterSchiff) February 19, 2020
However, Schiff also fails to mention that at the moment it is not retail investors that are making the difference, but primarily institutional investors.
Actually, among those who invested in BTC in the past when it was worth much less than now there were many young people with limited capital and little experience, some of whom in some cases have even become millionaires.
He went on to point out:
“The fake news spread by #Bitcoin pumpers is amazing. I acknowledged the past rise in the price of Bitcoin merely to point out that those gains did not prove my earlier comments about Bitcoin’s flaws as money invalid. A pyramid scheme has no place in an investment portfolio”.
The fake news spread by #Bitcoin pumpers is amazing. I acknowledged the past rise in the price of Bitcoin merely to point out that those gains did not prove my earlier comments about Bitcoin's flaws as money invalid. A pyramid scheme has no place in an investment portfolio.
— Peter Schiff (@PeterSchiff) February 19, 2020
During the night, the price of BTC fell by about 4.6%, hardly enough to suggest a bubble burst or the collapse of a pyramid scheme.
Bitcoin has experienced such drops many times in the past, and only those who hardly know this market can be surprised.
Finally, he wrote:
“Bitcoin bugs have been buying in anticipation of the May 12th halving. It’s widely anticipated that following the halving Bitcoin’s price will surge. But if by the time the halving arrives those looking to profit have already bought, the halving itself will result in selling”.
#Bitcoin bugs have been buying in anticipation of the May 12th halving. It's widely anticipated that following the halving Bitcoin’s price will surge. But if by the time the halving arrives those looking to profit have already bought, the halving itself will result in selling.
— Peter Schiff (@PeterSchiff) February 19, 2020
This last tweet actually highlights a plausible hypothesis: after the halving of May 12th, or just before, it is possible that those who bought in the hope that the price would increase in view of the actual halving will probably sell to cash-out, and this could bring the price down.
On the other hand, something similar has already happened during the two past halvings of BTC, and in both cases, the drop did not result in a collapse.
