Peter Schiff, a well-known critic of Bitcoin, recently engaged in a thought-provoking discussion about Bitcoin’s value relative to gold. Despite his longstanding skepticism, Schiff has presented a scenario where Bitcoin could reach roughly $10 million by 2031.
However, the Bitcoin critic responded that this could happen under particular economic conditions.
Schiff’s Extreme Hypothesis On Bitcoin’s Ascent To $10 Million
This bold statement arises from the Economist’s comparison of Bitcoin’s potential growth trajectory to gold, highlighting the volatility of crypto assets and the spirited optimism of their proponents.
No matter how low the price of #Bitcoin falls, its proponents will always be able to claim its outperformed #gold. For example, even if Bitcoin falls to $100 in 2031 and gold rises to $10,000, they will claim that Bitcoin is up 100x in the past 20 years, while gold is only up 5x.
— Peter Schiff (@PeterSchiff) January 26, 2024
Commenting under this post, an X user asked, “What if Bitcoin goes to $10,000,00 by 2031?” Schiff then replied with a “hypothetical” scenario that pivots on the dramatic collapse of the US dollar, akin to the fate of the German Papiermark post-World War I. During that period, Germany experienced rampant hyperinflation, devastating the value of its currency.
Schiff suggests that only if a similar downfall of the US dollar happens does the BTC price catapult to $10 million. However, it’s important to note that this scenario is highly “hypothetical,” and the crypto critic is trying to convey that Bitcoin can only reach $10 million in an “extreme” case of economic turmoil.
If the U.S. dollar goes the way of the German Papiermark then I supposed that’s possible.
— Peter Schiff (@PeterSchiff) January 26, 2024
Community Reactions To Schiff’s Post
Notably, Schiff remains a staunch critic of Bitcoin. He recently expressed concerns about potential regulatory changes under the Securities and Exchange Commission (SEC) Chair Gary Gensler. He predicted increased regulations could raise Bitcoin’s transaction costs and adversely affect its market value.
The crypto community, however, often counters Schiff’s bearish outlook with a mix of criticism and humor. Influential figures like Samson Mow and Mike Alfred have directly responded to Schiff’s comparisons between Bitcoin and gold, often highlighting Bitcoin’s resilience and growth over the years.
Bro, in 2011 when gold was $2k and BTC was $10 you said BTC was going to zero and everyone should buy gold. 13 years later and gold is still at $2k and BTC is at $40,000. Just stop.
— Jeff Berwick (@BerwickJeff) January 26, 2024
Mow, in particular, has pointed out that once Bitcoin surpasses gold’s market cap, gold could be relegated to its “industrial utility cost.”
Once #Bitcoin surpasses gold’s market cap, gold will be demonetized to its industrial utility cost.
— Samson Mow (@Excellion) January 26, 2024
These responses from the crypto community showcase the strong belief in Bitcoin’s potential and its role in shaping the future of global finance.
Meanwhile, in the current market, BTC has shown signs of recovery. At the time of writing, Bitcoin is trading above $40,000, a notable increase from its earlier values of below $39,000 earlier this week.
Featured image from Unsplash, Chart from TradingView