Gold bug and economist Peter Schiff has recommended selling bitcoin today, emphasizing that it is “the smart move.” Many people disagreed with Schiff’s analysis of the price of the cryptocurrency, warning that he is telling investors to sell at the bottom.
Peter Schiff’s Bitcoin Advice
Gold bug and economist Peter Schiff has a Christmas message for bitcoin investors. Schiff is the founder and current chairman of Schiffgold, a precious metals dealer specializing in gold and silver bullion. He has long been a bitcoin skeptic, regularly bashing the crypto while promoting gold.
He tweeted Sunday:
My Christmas gift to HODLers is this bitcoin chart. As you can see bitcoin is much closer to its ceiling than its floor. The yellow line that was once support is now resistance. Since the upside potential is so low and downside risk so high, the smart move is to sell today.
While some people thanked Schiff for his advice, many criticized the economist for telling people to sell at the bottom and causing panic selling. “Just one advice for you: write these things when bitcoin is around top (for example around $200K next time) and you just might help someone. Doing this near the bottom doesn’t help. You saw this last time,” one responded to Schiff’s tweet.
Some people took Schiff’s warning as a sign that the bottom is in. A number of people said they just bought more coins since the price of BTC soared after Schiff said to sell in the past. Many people disagreed with Schiff’s BTC price analysis, telling the gold bug to zoom out on the bitcoin chart to see a buy signal. “The bottom is in,” one wrote.
A number of people reminded Schiff that bitcoin has far outperformed gold in the long term. “My Christmas gift to Peter Schiff is this gold chart which compares its performance to bitcoin during the highest period of inflation in a generation,” one detailed.
Many bitcoin investors have accused Schiff of not understanding the cryptocurrency. However, the economist defended his knowledge of BTC in a tweet last week: “The bitcoin HODL gang accuses me of not understanding bitcoin. They think that if I just took the time to learn about the underlying technology I would embrace it.” He claimed:
The truth is that I understand bitcoin much better than the people who own it. That’s the reason I don’t.
Schiff regularly warns about bitcoin. Last week, he cautioned that BTC may not rise when other financial assets rebound. In November, he predicted that bitcoin has a long way to fall, valuing BTC at $10K. He also believes that the U.S. dollar will crash and the Federal Reserve’s actions will lead to a massive financial crisis.
What do you think about the warnings by gold bug Peter Schiff? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
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