The price of Bitcoin is currently at $9.5k which has made a lot of bulls come out to say that now is the buying opportunity with sceptics claiming it is a chance to make digs. The gold bull, Peter Schiff is amongst the first to jump to the opportunity and rather than buying, he is doubling down on his bearish statement.
The funny thing is there are a few similarities between the nascent crypto market and the early days of the gold rush. Schiff is pointing to the market dynamics as a weakness while crypto market leaders are reminding him that gold, isn’t all that different after all, despite being a competing store of value that can’t quite double up as a payment method.
Recently showing signs of thawing BTC, Schiff took to Twitter after the community gifted him thousands of dollars worth of Bitcoin (like he needs it, right!). The stockbroker had an open mind on Bitcoin for a short time but he has seemingly gone back to his old way of thinking as he recently tweeted:
Bitcoin was a major marketing success for big buyers who got in early. But to really succeed they must dump what they pumped without crashing the price. Doing so requires creating enough FOMO to sucker institutional investors into coming aboard without HODLers jumping ship!— Peter Schiff (@PeterSchiff) July 27, 2019
One user responded to Schiff, saying: “How he doesn’t get this I have no idea. And when you try and sell your gold back it’s typically at a higher discount than bitcoin.”
The popular expert trader and analyst, Luke Martin has made the comparison to gold, saying:
the same is true for gold.— Luke Martin (@VentureCoinist) July 28, 2019
the difference is the asymmetrical upside that still exists for Bitcoin
Putting a hole in Schiff’s thought process, Chainalysis research said that the whales usually buy-in when the price dips.
“Intensive analysis of bitcoin’s 32 largest wallets, however, shows these fears to be overblown. Our data demonstrates that Bitcoin whales are a diverse group, and only about a third of them are active traders. And while these trading whales certainly have the capability of executing transactions large enough to move the market, they have, on net, traded against the herd, buying on price declines.”