If you are still on the fence about taking investment advice on Bitcoin from Peter Schiff, the CEO of Euro Pacific Capital, here’s a visual representation of how wrong he was about crypto in the 2010s.
This is @PeterSchiff talking about bitcoin in June 2011.
— Crypto₿ull (@CryptoBull) January 9, 2020
The video shows what would have happened with $10k stored in bitcoin vs gold from then to now. pic.twitter.com/9ZWVGhCHWH
When Bitcoin reached the top of its first bubble period of $31 in June 2011, Schiff claimed that the first cryptocurrency could be simply a fad during a radio show with Donald Norman, the founder of a London-based Bitcoin consultancy, that aired on June 20, 2011. Meanwhile, he insisted that gold could be used in all sorts of properties.
“If I’m going to take $10,000 and store them in Bitcoins, how do I know if a year or two from now anybody is going to accept them for anything. What if it’s a fad and nobody wants them?”
Back then, however, Schiff wasn't such a ferocious bear since he admitted that Bitcoin had scarcity despite lacking intrinsic value. Fast-forward to 2020, he now claims that BTC is a fraud that will be worth nothing after the next halvening.
Those who took a word of advice from Schiff missed out on the best-performing asset of the previous decade that skyrocketed by 9 mln percent. In fact, those contrarian investors who bought $10,000 worth BTC after listening to Schiff, could have netted an eye-popping $4.179 mln on Dec. 31, 2019, if they had enough patience to hodl throughout all these years.
Meanwhile, gold buyers would end up with only $9,854 (less than the initial amount of their investment). Schiff predicted that the yellow metal could surge to $5,000 by 2014.
With the continuous expansion of the US economy and surging Bitcoin prices, the previous decade was a disaster for Schiff who rose to stardom by predicting the 2008 financial crisis when pretty much everyone was bullish.
Given that BTC has a snowball's chance in hell of bringing investors the same returns in the 2020s, Peter Schiff might have better luck this decade. However, his latest jab at Bitcoin backfired since BTC touched $8,400 shortly after his acrimonious tweet.
Yuri Molchan
Godfrey Benjamin
Arman Shirinyan
