Economist and gold bug Peter Schiff says bitcoin still has a long way to go after the collapse of crypto exchange FTX. He also believes $10,000 is the real price of bitcoin, warning that “the lion’s share of sales haven’t even started yet.”
Schiff predicts ‘Bitcoin still has a long way to go’
Gold bug and economist Peter Schiff has warned in a series of tweets that the price of bitcoin is falling far from its current level.
He began by referencing the prediction he made in June that the need to sell bitcoin to pay bills will only get worse as the recession deepens and longtime BTC holders without pay are forced to sell. Noting that it didn’t take long for his prediction to come true, Schiff tweeted on Wednesday:
The lion’s share of sales haven’t even started yet. Bitcoin still has a long way to go.
He added in a follow-up tweet: “I have been warning for years that all people who made money in crypto will be sued by all people who lost money in crypto. So lawyers pump up.
Commenting on collapsed crypto exchange FTX and former CEO Sam Bankman-Fried (SBF), Schiff wrote, “I never looked into SBF as I never considered investing in FTX. But if I had done ten minutes of due diligence, the red flags would have been obvious. He elaborated:
That many in crypto were so easily duped by an obvious scammer casts doubt on their judgment of all things crypto.
Schiff thinks $10,000 is Bitcoin’s real price
Schiff also shared his thoughts on the recent performance of Grayscale’s bitcoin trust (GBTC) and its relationship to bitcoin’s price. The bitcoin skeptic wrote on Friday:
Based on GBTC’s 43% discount to NAV, bitcoin is already trading well below $10K. I think this is the real price of bitcoin because when you sell GBTC you get paid real money. But when you sell BTC, you get a paid chain. To actually get cash for bitcoin, you have to accept a huge discount.
“GBTC is now trading at a 46% discount. New record. Something is definitely going on. Bitcoin is really in trouble. Get out while you still can!” added the golden beetle. At the time of writing, BTC is trading at USD 16,727.
Many people on Twitter disagreed with Schiff. One user opined: “This is just embarrassing. Imagine throwing away BTC because it was $100, and all these years later you still have no idea about any aspect. Another wrote: “I never got tethered when selling bitcoin. The discount is also because there are hedge funds that can only buy GBTC and not BTC that get confused and need to attract as much liquidity as possible.
Market analyst Joe Consorti explained on Twitter on Friday that GBTC has been dumped by institutions throughout the year and that parent company Digital Currency Group (DCG) has chosen to pick up the bag “to mitigate the impact of institutional-level selling pressure and support the net asset value (NAV) of the fund.” However, he noted, “Still, that intervention hasn’t stopped the discount on the fund’s NAV to -42.7%.”
On Friday, Grayscale Investments shared information about the safety and security of its products. The asset management company insisted that the digital assets of its products are safe.
What do you think of Peter Schiff’s comments? Let us know in the comments below.
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