Peter Schiff’s primary point is that bitcoin has become akin to a religion. He insists that those holding bitcoin are living in a fantasy world, and believe they will get rich by holding on to bitcoin. Image from CNBC’s Youtube video.
The thrown-down between bitcoin skeptic Peter Schiff and bitcoin bull Anthony Pompliano was an entertaining debate. Yet while everyone focuses on how bitcoin — and I’ll explain why Peter Schiff is correct – he was also wrong about gold.
Bitcoin is a Religion Without a Real God
Peter Schiff’s primary point is that bitcoin has become akin to a religion. He insists that those holding bitcoin are living in a fantasy world, and believe they will get rich by holding on to bitcoin.
Whether religion is an appropriate analogy or not, the point remains the same: that bitcoin bowls are pushing all-in based on a number of arguments that don’t stand up to either logical or economic reality.
If we were to set aside every single bearish argument for bitcoin, Peter Schiff still has a very good point when he mentions that
“when you’re in a bubble, you can’t see the bubble”.
Whether bitcoin has any future value or not, whether it is the pending replacement for fiat currency or not, and whether it is the second coming of the Messiah or not, there is no basis for bitcoin to be worth its current trading value.
This is Peter Schiff’s ultimate point about being in a bubble.
Bitcoin is a Bubble, Even at $1
A bubble implies that the price of a given security or securities has vastly exceeded their intrinsic value. It also implies that the current trading price exceeds any reasonable notion of a discounted future value.