Prominent American economist and full-time Bitcoin slammer, Peter Schiff, used the recent oil slumps to bash against the primary cryptocurrency. He believes that the events have still not validated Bitcoin as an asset class, but that the downside risk it provides is “only” 100%.
Schiff: BTC’s Risk Is Limited To 100%
It seems today that Schiff, the CEO, and CGS of Euro Pacific Capital, uses almost all current economic events as an opportunity to talk down the largest cryptocurrency by market cap. In his latest rant against Bitcoin, he went against its asset class stance and volatility:
Bitcoin bugs claim that oil’s plunge into negative territory validates Bitcoin as an asset class, as despite its high volatility and big drops, its price never fell below zero. I agree that the down side risk in #Bitcoin is limited to 100%. Not exactly a compelling reason to buy!
— Peter Schiff (@PeterSchiff) April 21, 2020
Nevertheless, what Schiff failed to discuss in his Tweet is the fact that despite being a heavily regulated market with tons of oversight, oil prices behave just as worthless ICO cryptocurrencies back in the 2018 bubble. Bitcoin, on the other hand, is very far from that.
When Wall Street tanked in mid-March, Bitcoin also felt the impact and it dropped to $3,600 in an instant. However, the price has since recovered and it’s currently just shy of $7,000. Unlike legacy markets, however, Bitcoin did this entirely on its own. The market has no regulatory supervision, there are no emergency “circuit breakers” allowing traders to take a deep breath before continuing trading. There are no governments pumping trillions of freshly-printed dollars into the failing economy just to bail it out.
Of course, that’s not the first time Schiff takes a stab at Bitcoin. A few weeks ago, he made another doomsday prediction for Bitcoin, claiming that it will simply crash.
Oil And Bitcoin
In a historical event, the US crude oil prices fell below $0 yesterday to $-37.63 per barrel. Naturally, this is the lowest level since NYMEX opened oil futures trading in 1983.
Although prices are regaining some of the lost value, oil’s near future still doesn’t seem too bright. The lockdowns prompted by the COVID-19 pandemic limited most internal and external travel. Consequently, this plunged the demand as air travel is consuming substantial petrol-based products.
Also, as Cryptopotato reported, the massive oil price slumps are unlikely to affect the primary digital asset adversely.