Euro Pacific Capital CEO Peter Schiff is well-known in the crypto community for his heavy critiques of Bitcoin. Recently, Schiff reached headlines with a story about losing the private keys to his Bitcoin wallet.
Even though Schiff stands against everything crypto and supports the legacy financial system with banks, he is now warning that cutting interest rates by the Fed could have a negative impact on the US economy.
The community responds to his tweet – ‘Bitcoin fixes it’.
‘Cutting interest rates is a mistake’
Peter Schiff has taken to Twitter to comment on the Fed possibly implementing lower interest rates – a step the US Central bank may take to try to save the stock market and the economy of the country the rest of the world depends on.
He points out that rate cuts made earlier (starting from the financial crisis of 2008) have put the economy into its current state and made it vulnerable.
The last thing the Fed should do now is rescue the stock market or the economy by cutting interest rates. It's rate cuts of the past that have left both the stock market and the economy so vulnerable in the present. It's much better to swallow some very bitter tasting medicine.— Peter Schiff (@PeterSchiff) February 28, 2020
Cutting rates and quantitative easing cannot solve real economic problems, Schiff reminds his followers in his next tweet. They only make the root of the problem worse, he says.
When will it dawn on the financial world that central banks cause problems, they don’t solve them? Real economic problems are not solved by printing money. Cutting interest rates and inflating asset bubbles only exacerbates the very imbalances that lie at the root of the problem.— Peter Schiff (@PeterSchiff) February 28, 2020
‘Bitcoin fixes it’
Crypto analyst PlanB has also touched on the problem of negative rates in his recent tweet. He states that, where he lives, negative interest rates have already been implemented with savings accounts. PlanB also says that pension funds are having difficulty making returns.
Bitcoin could be the answer to all of that, the analyst says, as it is now considered to be a safe haven asset by the crypto community.
Similar suggestions were made in the comment thread to Schiff’s tweet.
Peter Schiff disagrees
After a recent interview Morgan Creek Digital partner Anthony Pompliano gave to CNN, Schiff initiated a dispute with Pomp on Twitter regarding Bitcoin.
Schiff got on his hobby-horse trying to convince Pompliano that BTC is not a safe haven asset.
In response to his BTC criticism, when Schiff was tweeting about losing the private keys to his BTC wallet, CZ of Binance pointed out that the Euro Pacific CEO is doing crypto a favour by making more people aware of it on his Twitter account.