Peter Schiff’s blind skepticism toward Bitcoin would be better applied to the mainstream media. The self-professed ‘gold-bug’ and vocal Bitcoin critic speculated that cryptocurrency advocates would be eagerly anticipating Paul Tudor Jones’ appearance on CNBC on May 11.
Schiff said Bitcoiners would be hoping for a price pump, following revelations that the hedge fund manager recently revealed he had bought into Bitcoin.
“It looks like #Bitcoin pumpers are front-running the Paul Tudor Jones 8:30 AM @SquawkCNBC interview, as they assume his pro Bitcoin comments will result in CNBC viewers buying. But the dump may be particularly violent if his comments fail to live up to highly hyped expectations.”
It’s worth noting that Jones has already confirmed that he holds “a little over 1%” of his assets in Bitcoin.
Peter Schiff’s Media Blindspot
But Schiff’s unbounded skepticism toward Bitcoin has apparently blinded him to the machinations of the mainstream media, and CNBC in particular. The bold price predictions made by CNBC’s Ran NeuNer have proven wildly inaccurate, overly optimistic, and even dangerously wrong in the past.
In July 2019, when Bitcoin was priced at $10,500, CNBC Africa’s “Crypto Man Ran” told his followers that BTC would “never see $5,000 again”. Just over eight months later, Bitcoin traded for $4,100.
Bitcoin will never go to $100 again. It’s will never see $1000 again, never see $3000 and never see $5000 again. I think the right question is , if Bitcoin goes to $ 8000 again, how much will you buy? https://t.co/s1CV3OjsQn
— Ran NeuNer (@cryptomanran) July 20, 2019
Mainstream media attention falls on the cryptocurrency space when the price of Bitcoin goes up. By the time the professional speculators on CNBC begin discussing Bitcoin, the price is usually already at, or near, a peak.
So Peter Schiff’s assertion that crypto enthusiasts will be looking for a price pump from this latest coverage on CNBC falls wide of the mark. CNBC did not get Bitcoin and the cryptocurrency space where it is, and its effect on the future price of BTC will be minimal at best.
Schiff Admits Bitcoin Mistake – With a Caveat
In the combustible Twitter thread that followed, Schiff was asked what price Bitcoin would have to reach before he would admit his mistake in avoiding it. Surprisingly, the gold merchant did admit his mistake, but with a caveat. Schiff tweeted:
“I already admitted it was a mistake not to buy Bitcoin when I first learned about it, as I could have made a lot of money selling into the hype. But my original assessment of its ultimate value is still correct. So it would be an even bigger mistake to buy Bitcoin now.”
That’s in stark contrast to CNBC’s Brian Kelly, who said in 2018 that he would still want to buy Bitcoin if it was priced around $20,000. With this kind of advice coming from mainstream media outlets, is it any surprise that many investors lost over 90% of their funds during 2018’s market decline?
Mainstream media outlets chase the price of Bitcoin, and their self-appointed “experts” are forced to add to the hype in an attempt to justify the coverage. Cryptocurrency influencers on social media are often just as guilty of over-hyping their favored coins.
But that tends to be confined to a crypto audience that already exists, within “crypto Twitter” and other such meeting places.
Schiff’s mistake is in attributing a predictable “pump it” attitude to large swathes of the crypto space. Anyone who’s been deeply engrossed in crypto for more than six months has already gained some scars, and have probably had their hearts broken at least once. Their rough and tumble entrance to the world of crypto, while painful, ultimately toughened their skin, and gave them some natural immunization against the hype-artists Schiff rightfully denigrates.
So Peter Schiff is right—with a caveat. He’s just got his sights set on the wrong target.
Featured image courtesy of Mic