He’s spoken on bitcoin many times before in the past (most of it not being good) and he’s done it once again. Peter Schiff, has said that bitcoin has shown its true colours of not being a safe haven asset.
The biggest cryptocurrency in the world fell by $500 last night in just minutes, in daily trading, which for peter Schiff, s just fuel in the fire.
In a tweet sent earlier this week, Schiff - who has become known as a bitcoin naysayer to many crypto enthusiasts - claimed BTC/USD dipping below $10k, puts a play on theories it functioned as a hedge against the volatility of fiat.
“Bitcoin has again failed the safe haven test. On Friday, as escalating trade tensions sent global stock markets plunging, investors sought refuge in monetary safe havens. The Japanese yen, Swiss franc, and especially gold all moved higher. Yet Bitcoin plunged by more than stocks!”
Over the past two months, a theory has been floating around the space in regards to bitcoin investment habits which is what Schiff was referencing.
Before we go any further, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!
Last week saw Bitcoin volatility hit a two-month low but the fresh move down spurred critics such as Schiff, who said:
“Since last Thursday Bitcoin has lost more value than any of the major stock market indexes, while gold and silver have gone up.”
Schiff’s argument was lost on Bitcoin proponents though. One Twitter account known as Parabolic Trav rebutted Schiff on Bitcoin's intrinsic value, saying:
“Why on earth would Bitcoin be a safe haven? Bonds are the safe haven in the current paradigm. Nor is gold a safe haven.”
“Bitcoin is simply, over time, ‘number go up,’” Trav meanwhile continued in an attempt to fend off Schiff. He finished off saying:
“If you try to fit it into the legacy financial analysis box, you'll be rekt Which is what you are Pete!”