Veteran Bitcoin critics double down after latest sell-off
Peter Schiff and Nassim Taleb take aim at Bitcoin advocates
With Bitcoin having lost a third of its value in the past fortnight, the cryptocurrency’s most well-known critics have doubled down on their scepticism.
What was heralded by many as a digital equivalent to gold that could help both individuals and institutions weather the storm of inflation has fallen by 56% since the start of 2022, despite record price rises around the world.
Peter Schiff, the prominent financial commentator, tweeted:
Schiff further denounced crypto ‘experts’ as “shills” and stated: “Anyone who really understands crypto doesn’t work for a crypto company.”
He further accused Bitcoin whales of generating a fear of missing out in the public by paying politicians, athletes and celebrities to embrace Bitcoin, and then cashing out when the cryptocurrency was at its peak.
Schiff, a proponent of the gold standard, has been consistent in his criticism of Bitcoin.
Bitcoin advocates have been similarly consistent in highlighting the fact that Schiff has repeatedly argued over the years that the cryptocurrency is due to collapse, only for bullish momentum to return.
In March 2020, when Bitcoin fell below $4,000, he stated: “At the rate my lost Bitcoin are losing value, soon the difference between having Bitcoin and not having any Bitcoin will be too small to matter.”
Even after 2022’s dramatic sell-off, Bitcoin stood 300% higher on Monday than the level at which it traded when Schiff made the statement.
Taleb weighs in
Bestselling author Nassim Nicholas Taleb joined in the criticism of Bitcoin, which he once hailed as “an excellent idea”. The former trader stated:
“Bitcoin is an intelligence test. Bitcoin/blockchain’s rationale, which makes it attractive to pple conspiratorial yet stupid & naive, is to escape the custodian/trust system.”
Taleb mused that Bitcoin “will be a gold mine for lawyers’ and observed: “When regulations are fuzzy, there is a lot of room for civil suits, as with the junk bond debacle (in additional to criminal ones, e.g. Milken). If you bought cryptos based on an EXPLICIT recommendation, make sure you have the screenshots.”
Bitcoin traded at $20,498 by 14:20 BST (UTC+1) today, having fallen as low as $17,721 over the weekend.