Bitcoin has shaken the establishment over the years as those who couldn’t understand the cryptocurrency have outright rejected it as a pump-and-dump scheme or as a fraud. However, bitcoin’s price gains have clearly proven those critics wrong. This is exactly what Twitter user Rhytmtrader pointed out recently.
Let’s take a closer look at how some of these prominent bitcoin critics have got it all wrong.
Peter Schiff is a well-known gold bug and a big-time bitcoin hater who doesn’t let go of any opportunity to criticize the crypto asset. It was only a few days ago that Schiff called the cryptocurrency a pump and dump scheme. And then a few days later, he made a wild claim stating that bitcoin is all set to go down badly thanks to the pot stock crash.
But despite Schiff’s best efforts, the price of bitcoin has gone in only one direction – north. Schiff’s dislike for bitcoin came to the fore just over eight years ago in June 2011, when the cryptocurrency was trading below $20.
Schiff believes that bitcoin has no intrinsic value. He favors gold, stating that the yellow metal has value and can be used for different purposes such as jewelry and electronics. But he seems to be forgetting that bitcoin has come to the rescue of people when banking systems and governments have failed. The divisibility of bitcoin and the fact that it can be used to quickly execute transactions at low costs are utilities that Schiff has conveniently ignored.
So, while bitcoin adoption has gained steam, Schiff has lost out on a ton of money.
Rhytmtrader’s list also includes economists Nouriel Roubini and Paul Krugman, whose ignorance toward bitcoin has cost a big opportunity to enhance their wealth. Roubini gets happy every time there’s a development against crypto.
He believes that it is a tool that creates inequality by putting money in the hands of criminals. Roubini might not have had the same views had he brought bitcoin when the cryptocurrency was taking off. It was in April 2013 when Roubini started ranting against bitcoin, and it must be really painful for him to see how the flagship crypto asset has taken off ever since despite the ups and downs.
Paul Krugman is another economist who doesn’t have a very bright view of the cryptocurrency. In September 2011, Krugman said that the crypto asset is susceptible to “money-hoarding, deflation, and depression.” However, it has emerged that bitcoin’s uncorrelated nature to the stock market and the broader economy is a blessing in disguise.
As it turns out, institutional investors have been pouring money into bitcoin. This is a validation of the crypto asset, and it wouldn’t have happened if the words of the critics listed above carried some weight. All of this means that the critics have been wrong this entire time, and they might not get any redemption in the future either.
This article was edited by Samburaj Das.
Last modified: November 22, 2019 10:17 UTC