Peter Schiff issues dire warning to Bitcoin investors
‘Have fun staying poor’: Peter Schiff issues dire warning to Bitcoin investors
Bitcoin is firing on all cylinders. Year to date, the price of the world’s most prominent cryptocurrency has surged by more than 56%.
While 2024 is shaping up to be a year of optimism and growth for Bitcoin, economist Peter Schiff, has a stark warning for its investors.
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“Attention Bitcoin #HODLers. This may be your last change to sell your #Bitcoin and buy some #gold and #silver at favorable prices. If you fail to act, have fun staying poor,” said the CEO and chief global strategist at Euro Pacific Capital in a recent tweet.
“HODL,” an acronym for “hold on for dear life,” is a popular slang term used by crypto enthusiasts. It refers to the act of buying and holding an asset for the long term, undeterred by market swings.
It’s not the first time Schiff has taken a contrarian stance on Bitcoin. In February 2021, when the cryptocurrency hit $50,000 and the upward momentum seemed unstoppable, he said, “While a temporary move up to $100K is possible, a permanent move down to zero is inevitable.”
Bigger crash lies ahead?
As before, Schiff’s cautionary stance sharply contrasts with the optimistic predictions of cryptocurrency bulls.
For instance, Ark Invest’s Cathie Wood has predicted that the price of Bitcoin could reach $1.5 million by 2030.
Considering that the cryptocurrency currently trades at around $69,000 apiece, Wood’s price target would imply a potential upside of 2,074%.
The prevailing bullish sentiment surrounding Bitcoin hasn’t swayed Schiff’s skepticism about its future prospects. He recalls the cryptocurrency’s previous dramatic surge and points out what unfolded subsequently.
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“#HODLers, do you remember how bullish you all were in Nov. 2021 when #Bitcoin traded $69K? I do,” he tweeted last month. “A year later Bitcoin traded below $16K, almost 80% lower. Given that most are even more bullish now, an even bigger crash likely lies ahead.”
Read more: Suze Orman says Americans are poorer than they think — but having a dream retirement is so much easier when you know these 3 simple money moves
Precious metals to the rescue?
Bitcoin is often heralded as digital gold. However, Schiff’s comments make it clear that he has a strong preference for the tangible precious metal that has been a store of value for thousands of years.
A long-time advocate for gold, Schiff described it as a “safe haven” from inflation in 2021 — a time when inflation rates began to climb sharply in the U.S.
Gold is regarded as a hedge against inflation for a simple reason: It can’t be printed out of thin air like fiat money.
Last year, Schiff renewed his call for investors to consider gold, suggesting that the metal was underpriced.
“I think it has to be repriced higher to reflect the reality of much higher inflation. We’re not going to go back to 2%, probably in my lifetime. It’s going to be much higher than that, and when investors come to terms with that, they’re going to bid up the price of gold much higher,” he said to Fox Business.
Fast-forwarding to the present, the enthusiasm of investors has indeed propelled the price of gold to record levels. The precious metal recently broke through the $2,300 per ounce mark, setting a new milestone.
Schiff anticipates significant upside potential not only for gold but also for silver.
“In case you haven’t noticed the prices of #gold and #silver rise almost every day. Get use to it,” he said in a recent tweet. “This pattern will likely continue for many years to come. The only change will be much higher prices and even larger daily gains.”
The price of silver has risen by about 17% in 2024.
These days, there are many ways to gain exposure to gold and silver. You can own bullion, buy shares of precious metals mining companies or ETFs, or even consider a gold IRA, but you should know the risks.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
