Why Peter Schiff is Wrong About Bitcoin

Peter Schiff, a market commentator and CEO of Euro Pacific Capital,believes that Bitcoin is headed much lower than the prediction of $50K. Schiff has criticized cryptocurrencies before on his Twitter handle and recently tweeted that Bitcoin will fall below $2,000 as it completes the dreaded head and shoulders pattern. “The Bitcoin chart looks horrible,” Schiff tweeted. “Not only does the flag that followed the recent breakdown project a move to $6K, but we are close to completing the right shoulder of a head and shoulders top, with a $14K head, and a neckline below $8K, that projects a collapse to below $2K!”

The crypto community was quick to comment on this remark, however, the technical indicators did suggest further downside ahead a week ago. It’s important to note that Bitcoin is popular for its inverse head and shoulders pattern, though it is debatable. Several crypto experts have reported that the current prediction for Bitcoin, based on technical indicators, calls for new all-time highs by the end of the year. Traders are expecting the cryptocurrency to cross $12,000 before 2020, and on the downside a drop to $6,000 may be the next major move.

Anthony ‘Pomp’ Pompliano, co-founder of Morgan Creek Digital and a serial Bitcoin proponent responded to Schiff’s comments and criticized him. Learn more about his views here. In a private debate on CNBC Africa with host Ran Neuner, Pomp listened to almost an hour of Schiff explaining gold’s benefits and how Bitcoin would never ultimately have genuine value.

Schiff said that crypto investors have been “sidetracked by their own greed” and that Bitcoin has become a form of religion. He concluded that the crypto community doesn’t see the bubble because they live in the bubble. Pompliano has been in a constant battle with Schiff on Twitter and he orchestrated a donation campaign earlier this month, receiving 0.2 BTC through it.

Peter Schiff has been popular as a gold bug and his comments on cryptocurrencies are less popular in the community. He attempted to deliver a stark vision of the future in which gold bugs were on the losing end compared to Bitcoin. Peter’s followers believe that Bitcoin doesn’t have a foreseeable future and if they turned out to be wrong they could be missing something valuable.

Based on technical analysis, there is a chance that an asymmetric asset like Bitcoin may exceed expectations and hit $20,000 by the end of the year. Pompliano’s opinion was echoed by another major investor this week; Raoul Pal, the ex-Goldman Sachs executive who described Bitcoin as being potentially undervalued. Pal argued that even if there is a 1% chance of Bitcoin succeeding as an alternative financial system it’s market cap could skyrocket beyond expectations. Peter Schiff may be a gold bug who is right with his predictions most times, however, he isn’t right about Bitcoin based on the opinion of crypto experts and the technical analysis.






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