Peter Schiff Thinks Bitcoin 'Will Never Be A Reserve Asset,' But Others See The Drop As A 'Testament To Bitcoin's Potential'

Author: Khyathi Dalal | August 05, 2024 02:46pm

Renowned economist Peter Schiff dismissed Bitcoin (CRYPTO: BTC) as a possible reserve asset in the wake of an 18% drop over the past seven days.

What Happened: Schiff took to X on Monday to highlight that a reserve asset should have characteristics like relatively low volatility, the capacity to be readily sold when needed and a more stable value than assets it’s supposed to hedge.

Commentators clapped back at Schiff, saying that any new money can not have magically have low volatility before being adopted by nations.

Jane Adams points out that although the Bitcoin drop is alarming, it is a "testament to Bitcoin's potential." She thinks this volatility marks the growing pains of a revolutionary asset class and suggests central banks rethink strategies as Bitcoin "offers unprecedented opportunities for diversification & growth."

Meanwhile, one crypto trader compared Bitcoin to gold, stating that the latter is a reserve asset that dropped 50% from 2011 to 2016.

Another notable crypto trader said that Bitcoin “is literally the only 24/7/365 global liquid asset.”

While Schiff continues to argue that reserve assets like gold, the Swiss franc, Japanese yen and treasuries reflect stable performance, heavily followed X user Lyndon Wood pointed to Bitcoin’s long-term appreciation.

A year ago today BTC was $29,000 now it's at $51,000 and hit $73,000

What part don't you understand Peter?

Gold a year ago was 20% less so still good but not as good as BTC growth.

— Lyndon Wood ✌️👽🙏 (@Lyndonx) August 5, 2024

What’s Next: In another post, Schiff noted that tech and crypt markets are pricing in an almost 100% probability of a 50-basis point September rate cut.

This caused a "buy-the-dip" reaction in the market. However, he suggests selling as it is "too little, too late, especially when any hotter than expected inflation data could lower those odds."

The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Trump’s Bitcoin Strategy Comes Under Fire By Peter Schiff: If Ex-President Intended To Start A Strategic Reserve ‘He’d Have Kept His Intention A Secret’

Image: Shutterstock

Posted In: $BTC