Peter Schiff has been outspoken against Bitcoin BTC/USD for some time. The global economist shared thoughts on how celebrities and big names may have contributed to the rising price of the leading cryptocurrency in 2022.
What Happened: Schiff has warned investors that the price of Bitcoin will eventually go to $0, something he repeated in an interview with Bitcoin bull Anthony Pompliano recently.
Fraud and the role of the Fed in increasing the money supply were cited by Schiff as leading to the price of Bitcoin going higher.
“When you have easy money and a kind of casino-like environment, you’re going to have more of that, more fraud,” Schiff said.
Schiff added that Bitcoin has elements of a pyramid scheme, a Ponzi scheme and other illegal activities.
“In my industry, you sell the sizzle and not the steak. The problem is with Bitcoin there is no steak, it’s all sizzle.”
Related Link: Is Gold A Good Investment?
Role of Celebrities: In the interview, Schiff said that celebrities helped contribute to the unsustainable rise in the price of Bitcoin.
With millions of followers on Instagram and TikTok, Schiff said that influencers, celebrities and athletes were the perfect target for companies to pay to promote their cryptocurrency-related products.
“That’s what Kevin O’Leary did too,” Schiff said, referring to FTX.
Schiff added that O’Leary and Mark Cuban both changed their minds about cryptocurrency after getting paid to do so.
Pompliano asked Schiff if celebrities promote gold more than Bitcoin, making a reference to rappers wearing gold chains or having gold teeth and former President Donald Trump having a gold toilet and a gold room.
“When rappers have their bling, they’re not promoting it as an investment, it’s a way to display their wealth,” Schiff answered.
Schiff told Pompliano that Bitcoin was sold as a get-rich investment and “promoted far more heavily” than gold.
“No gold company had a Super Bowl commercial.”
Schiff said his son asked ChatGPT to name the biggest gold bull, and it came up with Schiff himself. Schiff told Pomplinao there’s no one famous associated with gold.
“Gold is not anywhere near the hype that Bitcoin is.”
When asked about his son investing in Bitcoin, Schiff said that Spencer Schiff is 20 years old and doesn’t know any better, while adding there’s a rebellious side to kids.
“The younger generation always thinks they know something their father, grandfather didn’t know.”
Schiff said a lot of people who are investing in Bitcoin will learn their lesson the hard way.
Read Next: Bitcoiner Pomp Shouts Down The Judge On CNBC, While Cramer Becomes Collateral Damage
Photo: Courtesy of Gage Skidmore on flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
