Peter Schiff uses oil slumps to criticize Bitcoin
- Economist Peter Schiff spoke against Bitcoin’s asset class stance and volatility.
- He said that the recent oil plunge into negative territory does not validate Bitcoin’s buying narrative.
Popular economist and Bitcoin critic, Peter Schiff, used the recent oil slumps to criticize the leading cryptocurrency yet again. He took Twitter to speak against Bitcoin’s asset class stance and volatility.
Schiff, the CEO and CGS of Euro Pacific Capital, said:
Bitcoin bugs claim that oil's plunge into negative territory validates Bitcoin as an asset class, as despite its high volatility and big drops, its price never fell below zero. I agree that the down side risk in #Bitcoin is limited to 100%. Not exactly a compelling reason to buy!
The US crude oil prices fell below $0 very recently to $-37.63 per barrel. This is the lowest level since NYMEX opened oil futures trading back in 1983. Though prices are regaining some of the lost value, oil’s near future doesn’t look very optimistic. The lockdowns imposed by governments to reduce the spread of COVID-19 limited most internal and external travel. This plunged the demand for crude oil as air travel is consuming a significant amount of petrol-based products.
Following Wall Street’s collapse in March, Bitcoin also felt the heat and plummetted to $3,600 in no time. However, it has managed to recover since then, and unlike legacy markets, it didn’t require the Federal Reserve to inject trillions of dollars into it to do so.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
