CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
    • Español
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • Español
  • bitcoin
    BTC$60,542.00
  • ethereum
    ETH$2,163.59
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Peter Schiff: Bitcoin Might Moon Amid This Emerging COVID19 Financial Crisis

    Peter Schiff: Bitcoin Might Moon Amid This Emerging COVID19 Financial Crisis

    Author: Jordan Lyanchev

    Last Updated Mar 25, 2020 @ 14:26

    The U.S. dollar and most fiat currencies will collapse during this financial crisis, said popular U.S. economist Peter Schiff. As a result, governments will start to rely once again on gold as the global reserve currency.

    He also continued his anti-Bitcoin narrative, saying that its price may rise in the short term, but it has no real value for the economy.

    2020 Will Be Worse Than 2008

    The Euro Pacific Capital’s CEO talked in a recent podcast with the popular Bitcoin proponent – Anthony “Pomp” Pompliano. Schiff stated that the world is in a financial crisis at the moment and double-downed on his prediction that this one will be worse than the 2008 Great Recession.

    The reason is linked to the Fed’s actions at the time. Instead of a productive recovery in 2008, the U.S. Federal Reserve only inflated the bubble and made it bigger. However, they only managed to postpone the inevitable crisis, he added:

    “We are now at the point of the real crash. They are going to try to inflate the bubble again. They are doing everything they did after the financial crisis only at a much bigger scale. Because this is a much bigger financial crisis because we have a lot more debt now.”

    Hyperinflation In The U.S.?

    When talking about Fed’s controversial measures, Schiff said that “stimulus packages” didn’t work last time and won’t work now. However, he added, there’s one significant difference between 2008 and 2020:

    ADVERTISEMENT

    “But this time, they don’t want just to bail out the banks. They want to bail out everybody. The entire nation is getting a bailout. They are printing money like crazy.

    If the government is not taking the money from taxes and it’s just printing it into existence, which is what we are doing, then you are simply destroying the value of the money.”

    Schiff explained that printing such extensive quantities of money in such a short period will eventually ruin the economy. It will lead to inflation in all sections of life, including necessities like food and hygiene stocks.

    According to Schiff, the situation in the U.S. may even reach a state of hyperinflation:

    “I think hyperinflation, as bad as that is, I used to think that was the worst-case scenario. Now, it’s kind of the most probable. It’s not a guarantee, but in order to avoid hyperinflation, things will have to get really, really bad.”

    He went even further, saying that what the U.S. will go through now will be worse than the 1930s Great Depression.

    The Dollar Will Collapse

    According to Schiff, the people’s need for liquidity is the only reason why the dollar is rising in value in the past few weeks. He referred again to the early days of the last crisis when the dollar went up, but then “it got killed. It will happen now again, and once the dollar starts to fall, it’s never going to stop.”

    The permanent gold-bull believes that the only possible solution from this situation would be going back to the precious metal. Once global central banks understand that the dollar’s value has nothing behind it, they will start buying more gold. Therefore, it will become, once again, the global reserve currency.

    “I think the most logical choice is just to go back to what worked before it was the dollar, and that’s gold. It’s only fair. Nobody can print gold. It’s mined from the ground. It’s a real commodity. It represents actual work. It’s a perfect store of value, and it’s a perfect monetary unit.”

    Gold, Not Bitcoin

    As Pomp is famous for his pro-Bitcoin stance, the topic of discussion inevitably reached the largest digital asset. Schiff, a well-known critic of everything-crypto, didn’t miss the opportunity to bash out against BTC’s potential role in the economy:

    “I don’t see any central banks deciding that they are going to use Bitcoin as their reserves. No banks have Bitcoin on their balance sheets now, they have gold. There’s no precedent for using a digital currency. It doesn’t have the physical properties that gold has that gives it value to store.”

    In one of the few positive things Schiff has ever said regarding BTC, he noted that its price may still increase:

    “I think it’s possible that Bitcoin can make another run to the highs, or even make another high. But I think that is a low probability outcome. I think there is a much greater probability that we’re in a bear market, and we are nowhere near the bottom. I don’t think the risk-reward is there.”

    He also noted BTC’s high levels of volatility, saying that it’s “good for trading.” However, due to the same fluctuations, it’s not a safe asset like gold.

    Ultimately, both Schiff and Pomp agreed that Bitcoin is entering a “put up or shut up” phase:

    “In the next 18 to 24 months, Bitcoin has to shine, or it won’t fulfill the promise that it has.” – Pomp concluded.

    Featured image courtesy of CNBC

    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • bubble
      Bitcoin is The Biggest Bubble Ever, Says Peter Schiff... Again
    • peter_schiff
      Bitcoin Skeptic Peter Schiff's Bank Investigated for Allegedly Serving Top Criminals
    • bitcoin_present
      Not Possible With Gold: Peter Schiff Asks for Bitcoin Gifts for His Son's Birthday
    Tags: Bitcoin Federal Reserve Gold Peter Schiff
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Jordan Lyanchev
    More posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

    button
  • bitcoin
    BTC$60,542.00
  • ethereum
    ETH$2,163.59
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    mindsync
    bigomex
    Bitcoin Editorials
    4 Reasons Altcoin Season 2021 Has Officially Started

    4 Reasons Altcoin Season 2021 Has Officially Started

    After Tesla: Is Apple Eyeing Bitcoin? What We Could Expect to See Next (Opinion)

    After Tesla: Is Apple Eyeing Bitcoin? What We Could Expect to See Next (Opinion)

    What Is NFT? Non-Fungible Tokens Guide For Dummies

    What Is NFT? Non-Fungible Tokens Guide For Dummies

    What is BitClout? The Latest Crypto Hype – Is It Safe?

    What is BitClout? The Latest Crypto Hype – Is It Safe?

    What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke 

    What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke 

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!