Discussions about the true purpose of Bitcoin have not subsided during both uptrends and downtrends, and Peter Schiff believes the first cryptocurrency failed as any kind of asset, including a safe haven asset, store of value or risk-on investment tool.
According to the economist and gold advocate, Bitcoin does not bring the same amount of value in comparison to the risk investors have to take every time they gain exposure to the cryptocurrency. Instead of becoming exposed to the risks of the cryptocurrency industry, investors should choose "superior" alternatives, Schiff believes.
If #Bitcoin is a risk asset than what exactly is its value proposition? If investors want to take on risk they have an abundance of superior alternatives. Bitcoin already failed as a currency, digital #gold, and a non-correlated asset. It won't succeed as a risk asset either.— Peter Schiff (@PeterSchiff) January 3, 2023
Though cryptocurrency markets are in a depressing state at this point in time, Schiff does not see the recovery of the industry in the foreseeable future after stating that BTC would not succeed as a risk asset in perspective.
Bitcoin enthusiasts and fans rushed to disagree with the famous crypto critic and stated that the first cryptocurrency is far more valuable than a risk exposure tool. According to some pro-Bitcoin experts and analysts, the first cryptocurrency will eventually become a substitute for continuously degrading fiat currencies.
Schiff told those who believe in Bitcoin's superiority that it cannot act as a safe haven, as people are losing more money on BTC than on any other class of asset. Though Schiff is technically right when talking about the first cryptocurrency's performance in the last year, it is important to note that Bitcoin and a batch of other cryptocurrencies would be far more profitable than any other investment instrument on the 5-10 year timeframe.
At press time, Bitcoin is trading at $16,867 with a 1.1% price increase in the last 24 hours.