Peter Schiff Warns Bitcoin Investors

By Rajat Gaur

Considering the unusual situation across the globe due to the COVID-19 pandemic, the United States is still in a question as to when to restart the U.S. economy. One certainly has appealed true for the cryptocurrency community and that’s the upcoming halving event.

On May 12, it was decided that the reward for miners will be expected to slash in half from 12.5 BTC per block to 6.25 BTC. The event has traditionally seemed to be bullish for the Bitcoin price, which has raised the voice of optimism across cryptocurrency investors this year. Moreover, Peter Schiff, CEO of Euro Pacific Capital has kept a warning to Bitcoin holders, with the tweet of “about to learn a very expensive lesson in economies”.

Moreover, Schiff also came up with the appropriate warning of an economic crisis for years, and damaged the monetary system. Thus he declined to indicate the shared features between digital gold and metal gold Bitcoin.

In addition, with the provided revenue of 21 million BTC will be mined with the provided 171,300 tonnes of the precious metal. Gold and Bitcoin act as a hedge vs. economic inflation. They have been recognized as the trade in an agreed manner to equities. Thus, neither Bitcoin nor Gold are appealing to billionaire investor Warren Buffett.
Schiff also talked about the issue with the theory, however, barring a few exceptions such as the ICO-fueled bubble of 2017. He notifies with the statement “easy come, easy go”.
The Bitcoin price has raised investors on a ride. This is to anticipate among the most sophisticated traders. The value has increased in more than a decade compared to the current market cap of $123 billion. This indicates the value that investors may assign to the cryptocurrency.
Lastly, bitcoin status seems threatening due to the easy monetary policy, which is designed for emerging asset classes. The major point for gold investors like Schiff is that Bitcoin has taken initiative with another store-of-value and exchanging-value asset to investors.

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