On Sunday, outspoken bitcoin-hater Peter Schiff took to Twitter to share an outrageous claim. According to the gold bug, he lost all of his bitcoin because his Blockchain wallet forgot his password. Of course, Crypto Twitter (CT) had a field day. As of this writing, the infamous tweet has over 4,700 comments, 1,400 retweets, and 5,400 likes. Many of the comments highlighted Schiff’s inability to keep up with new technology.
A few days later, the mystery of the missing bitcoin was solved. Even though it’s anticlimactic, Schiff remains adamant that it is not his fault.
A Wednesday evening tweet once again caught the attention of CT. This time, Peter Schiff admitted he made a costly mistake of confusing his PIN for his password. He also said that he never had a copy of his seed phrase.
While I laud Peter for clearing the air, I find it difficult to believe he never had a copy of his seed phrase. More importantly, he says he never knew his password. That’s also hard to believe. When you create a Blockchain wallet account (the wallet that Peter Schiff used), you’ll be asked to provide your email address and your password. You also have to reenter your password for confirmation.
In other words, there were two instances where Schiff could have entered his password. This makes me believe he may have a sinister agenda against the top cryptocurrency.
In summer 2018, ShapeShift chief executive Erik Vorhees had dinner with Schiff. He took the occasion as a chance to introduce the gold bug to bitcoin so he helped Schiff set up a wallet. Vorhees specifically told the bitcoin critic to secure his wallet.
It was Schiff’s responsibility to write down the seed phrase. Vorhees couldn’t have written it down for him because the keys are for his eyes only. The Blockchain.com wallet lets you write down your keys anytime whenever you’re logged in through its “Backup Now” feature. The crypto-hater could’ve easily noted down his seed phrase any time.
The fact is Peter Schiff always had access to his recovery phrase. He may have purposefully not written it so he can claim that bitcoin wallets are difficult to use.
From an objective standpoint, it appears that Schiff is a master of outrage marketing just like Donald Trump. His tweets are getting thousands of engagements both from his haters and supporters. He’s also sending the message that bitcoin is not ready for mass adoption and is hard to use.
Since his tactics are working, I expect Schiff to find a new angle to lambaste bitcoin soon. I bet the next one will be bolder because his previous attempts were getting absurd. So if you’re a crypto supporter, don’t engage. That’s the best thing you can do.