Peter Schiff took to Twitter to share an article about Democratic presidential candidate Joe Biden having high chances of walloping Trump in the November elections this year.
After saying that he had been warning people about the aftermath of the pandemic’s (and Trump’s QE) harmful impact on the economy and the US population, Peter Schiff replied to a comment from a follower who suggested Bitcoin as a way out.
The Euro Pacific CEO stated that in reality, you can buy nothing with Bitcoin or any other crypto.
‘Pay with crypto is a marketing gimmick’
The main reason Schiff cites for his predictions coming true in the near future is the current unemployment rate totaling 14.7 percent. That equals a loss of 34 million jobs, which is much more than in the Great Depression in 1929-1930, as per the aforementioned article.
The Fed Reserve and Donald Trump have injected over $6 trl into the economy via a quantitative easing program, which included one-time $1,200 checks to qualifying US citizens.
Later on, the Fed Reserve announced its intention to start buying ETFs to ensure that companies’ stocks have high enough demand.
A Twitter user in the comment thread suggested that buying BTC would be a way out and a chance to avoid using cash, which may soon lose a great deal of its value.
To that, Peter Schiff responded that in reality, you have to first convert Bitcoin into fiat USD, and only then can you purchase anything. So, he insists, the narrative that you can pay for real things with BTC is a lie.
However, investors can use it to convert BTC into gold, Schiff stated.
Pay with crypto is a marketing gimmick to make it easier for people to get rid of their #Bitcoin and buy #gold. They don't pay with Bitcoin. They sell their Bitcoin first, then they pay using the dollars they received from the sale. The lie is that you can buy stuff with Bitcoin.— Peter Schiff (@PeterSchiff) May 21, 2020
The ‘Rich Dad, Poor Dad’ author advocates both Bitcoin and gold
The renowned real-estate investor and financial educator Robert Kiyosaki has been tweeting quite a lot recently about the current economic recession caused by the pandemic.
The author of the ‘Rich Dad, Poor Dad’ book on financial literacy believes that the US dollars printed now by the Fed do not have any value and are fake. He reckons that the USD is about to die, mentioning the recent Bitcoin purchase by billionaire Paul Tudor Jones as confirmation.
However, unlike Schiff, Kiyosaki says that Bitcoin is a safe haven, along with gold and silver, in the current state of recession.