Peter Schiff is one tough nut to crack. The infamous gold and silver investor is not prepared to back down from his anti bitcoin sentiment.
Taking to Twitter on Tuesday Schiff told bitcoin hodlers that whales are currently in the process of offloading their bags:
“Bitcoin hodlers won’t sell as they believe they’ll get rich when #Bitcoin moons. Bitcoin whales get rich by selling now to realize their paper gains before a market crash wipes them out.”
Schiff, who owns his own precious metals dealer, aptly named SchiffGold, naturally prefers to punt his own product. He will, however, also gladly let you pay with cryptocurrency through Bitpay in exchange for his precious cargo.
Bitcoin is a pseudonymous currency which means that savvy digital analysts can track it to some extent. Twitter accounts like Whale Alert attempt to follow the cash flow as it moves in and out of cryptocurrency wallets and exchanges.
The theory goes that when a large number of bitcoin head to an exchange, a price dump is just around the corner.
Schiff hinted that the bitcoiner’s mantra of “hold on for dear life” is just a ploy by whales to push up prices so they can dump their holdings onto the public at a better price:
“The whales must make sure the hodlers don’t lose faith and cash out so that they can cash in!”
This is more commonly known as a ‘pump and dump’ scam – one that has plagued the cryptocurrency space in recent years. Schiff may not be saying it directly but it appears that he believes that bitcoin is the ultimate pump and dump scheme.
Admittedly, bitcoin has had a rocky time of it since July. But that doesn’t validate it as a scam, either. At least not yet. The flagship cryptocurrency climbed an impressive 317% in the first half of the year and briefly hit $10,550 a coin in late June.
That’s a move his precious gold could not compete with. In fact, if you had actively followed Schiff’s advice since 2011 you would have missed out on a juicy 44,400% bitcoin gain.
After ten years in circulation, it’s safe to say the flagship cryptocurrency is still going strong. This particular gold bug may be clutching at nothing other than straws. Nowhere else is that more evident than in hyper-inflated Venezuela where some people overwhelmingly prefer bitcoin over gold to pay for their medical costs.
This article was edited by Sam Bourgi.