Investor Peter Schiff has never been a huge bitcoin fan, but even he’s predicting that the currency won’t go down in flames.
Peter Schiff Makes Bold BTC Statement
The world’s number one digital asset by market cap has been having a rough time as of late. Serious drops started to throw themselves at the currency when the COVID-19 pandemic began growing in early March. Prior to that, bitcoin was trading for well over $10,000 but a sudden fall into the high $8,000 range occurred soon after.
A few weeks later, the currency fell into the $7,000 range, and before long, bitcoin was trading in the high $3,000s. Mind you that this sudden drop was relatively brief, lasting only a day or so, but it certainly gave analysts and traders something to think about.
With the recent crash of oil, bitcoin has fallen back towards $6,700, but has regained some steam as of yesterday morning and spiked back into the low $7,000 range. This is certainly good news, as the currency has now shot up past $7,000 for the third time in a little over a month, but it’s hard to predict what will happen from here. Could bitcoin endure further falls, or has the price somehow managed to find a sturdy position it can prop itself in for the time being?
Giving his two cents, one would assume that words from Peter Schiff would be fully negative. While he states that he doesn’t feel BTC is a positive investment on anyone’s part, he was quick to suggest that the currency will never reach zero. This is good news; to know that bitcoin will never reach the status of oil is somewhat refreshing and likely to give traders some newfound hope during these odd and desperate times.
In an interview, he states:
Bitcoin bugs claim that oil’s plunge into negative territory validates bitcoin as an asset class, as despite its high volatility and big drops, it’s price never fell below zero. I agree that the downside risk in bitcoin is limited to 100 percent. Not exactly a compelling reason to buy!
The Resiliency Hasn’t Died
Schiff’s words do suggest one huge notion: bitcoin is resilient. Despite the crash of oil and the trouble the financial market has endured as of late, bitcoin has not experienced anything even remotely similar. While it did fall into the high $3,000 range at one point, it was quick to shoot back up, and hasn’t experienced anything so drastic since then. At the time of writing, BTC is trading at a figure relatively similar with what investors witnessed during the early part of the year.
Despite today’s circumstances, Schiff has predicted bitcoin crashes in the past, and recently made headlines when he claimed that the crypto account he had suddenly couldn’t be accessed.
