- In a single tweet, Schiff encapsulated the investment thesis of Bitcoin while denouncing Bitcoin ETFs.
Lifelong gold bug and skeptic of cryptocurrency It’s possible that Peter Schiff unintentionally just revealed that there are multiple practical applications for Bitcoin.
The financial pundit claimed in a tweet on Tuesday that purchasing Bitcoin exchange-traded funds (ETFs) negates the benefits of purchasing the cryptocurrency, which are numerous.
Regarding Bitcoin ETFs, Schiff claimed that they are no longer decentralized, peer-to-peer, readily seized by authorities, and unable of being transferred across borders or used as payment currency. It isn’t your coins or your keys.
Schiff unleashed a torrent of derision with that single statement, even from Bitcoiners who, for the most part, agreed with him.
According to CEO of Beaver Bitcoin Aubrey Jesseau, if what Schiff claims is accurate, Bitcoin may be the greatest money the world has ever seen, he told Decrypt.
The business owned by Jessau is a non-custodial Bitcoin broker that sends client-purchased Bitcoin straight to a wallet under their control. Put another way, users are discouraged from entrusting a third party—like an exchange—with their Bitcoin by being forced to utilize their own wallet in order to use the platform.
Concerning the ETF, what is it? Pete is right, Jessau continued. It truly is a virtual reality holiday. It is best for you to use the real stuff.
Purchase Bitcoin and store it in a wallet that you manage. He went on, “No exchange, no leverage, no yield scheme.” The most performance asset ever, secured in a digital vault that you alone may access.
A lot of Bitcoin users expressed their pride in Schiff for at last changing his mind.
Peter McCormack, the host of the podcast What Bitcoin Did, tweeted that he is learning. Schiff has appeared on McCormack’s show several times to discuss the advantages of Bitcoin over gold, but his opponents have never been able to persuade him to change his stance.
Eric Balchunas, a Bloomberg analyst who has long praised the performance of the Bitcoin ETFs, couldn’t help but concur.
While you make a valid point, how is this any different from a gold mutual fund or exchange-traded fund? Balchunas enquired. Is “Not sitting in your own safe, not your gold” the appropriate motto?
Farside Investors, a company that regularly provides data on Bitcoin ETF flows, emphasized every one of Schiff’s arguments regarding the advantages of actual Bitcoin, such as its capacity to be used for payments and its resistance to censorship.
However, if you don’t need those features yourself, you might wish to profit from the rise in Bitcoin’s price as a result of those who do,” the company tweeted on Tuesday. ETFs are also recognized for enabling individuals to efficiently purchase Bitcoin inside of tax-favored savings accounts, including 401(k)s.
Later on, Schiff made it clear that while he was aware of what ETF buyers desired, their goals didn’t align with those of a typical Bitcoin investor.
Price is all that matters to these purchasers, he claimed. The objective is to withdraw gains. This indicates that the pyramid scam will implode shortly.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
