Prominent economist and cryptocurrency critic Peter Schiff recently issued a harsh warning about the future of Bitcoin (BTC).
Prominent economist and cryptocurrency critic Peter Schiff recently issued a harsh warning about the future of Bitcoin (BTC).
In a series of social media posts, Schiff expressed his belief that impending regulatory changes, led by Securities and Exchange Commission (SEC) Chairman Gary Gensler, could significantly impact the cost and viability of transactions. of Bitcoin.
“Believe [Gensler] “We will soon introduce onerous new crypto regulations that will substantially increase the cost of Bitcoin transactions, further undermining its ‘use’ case, resulting in a sharp drop in price,” Schiff said.
Regulatory changes on the horizon?
Schiff’s main concern centers on the possible introduction of strict new cryptocurrency regulations by the SEC.
He believes these regulations could dramatically increase Bitcoin’s transaction costs, thereby undermining its utility and causing its price to drop sharply.
Schiff’s prediction arises from his interpretation of Gensler’s recent actions regarding the approval of Bitcoin exchange-traded funds (ETFs), which he sees as a reluctant concession that could potentially trigger more aggressive regulatory measures.
Amid these debates, several social media users pointed out Gensler’s previous classification of Bitcoin as a commodity.
This categorization could make extensive SEC regulation difficult. However, Schiff maintains that the focus of the new regulations may be more on anti-money laundering (AML) than securities law.
Schiff’s skepticism
In other recent comments, Schiff has consistently questioned the intrinsic value and utility of Bitcoin.
He has pointed out the complexities and costs associated with directly purchasing Bitcoin, arguing that the need for third-party custodians contradicts his original premise of eliminating middlemen. Schiff’s skepticism extends to the usefulness of Bitcoin as a currency, a view shared by investor Mohamed El-Erian on CNBC, and the logic behind investing in Bitcoin ETFs.
Additionally, Schiff predicts that the majority of inflows into Bitcoin ETFs will be redirected from other Bitcoin representatives, likening this to rearranging deck chairs on a sinking ship.
It questions Bitcoin’s status as a store of value and its real-world utility compared to traditional assets like gold.
