Peter Schiff, a vocal opponent of cryptocurrencies especially Bitcoin has admitted that he was wrong in a previous prediction regarding the future of the cryptocurrency. He made these comments during a Twitter exchange between him and Tyler Winklevoss, the co-founder of Gemini cryptocurrency exchange and an anonymous cryptocurrency Twitter account.
In the Twitter exchange, Peter Schiff first claimed that Bitcoin was going to consolidate around $10,000 before dropping further. Tyler Winklevoss on the other hand had a completely different theory and proposed that the $10,000 figure was now the long-term Bitcoin support from now onwards. Schiff followed up and said that the $10,000 figure could easily be breached as the premier cryptocurrency lost almost 17% in two days and went from $12,000 to the current $10,000 level where it has been hovering around ever since.
Then Schiff said:
#Bitcoin can just as easily be consolidating before the next breakdown. Consolidations after sharp moves typically continue the move that proceeds them. The more the 10K support level is tested the weaker it gets. Markets rarely give investors that many chances to buy the bottom.
— Peter Schiff (@PeterSchiff) September 6, 2020
However, a crypto user Sharkybit wasn’t going to let Schiff walk away with all those outlandish claims and brought forward a statement from Schiff from two months ago on July 5 in which he said that Bitcoin was going to go down while Gold was going to go up. This didn’t turn out to the right prediction as both Gold and Bitcoin rose in value in the aftermath with Gold posting all-time highs and Bitcoin posting yearly high of $12,000.
Schiff admitted that he was wrong about Bitcoin’s price index but said that he was right about Gold’s price index. He also didn’t cow down from yet another outlandish statement and claimed that Bitcoin returning to $10k was an indication of the return of the bear market, a view not shared by any of the major analysts and traders and said most of the price increase to $12k was because of a huge marketing campaign by Greyscale. It is possible that Schiff may be a closet investor in Bitcoin and may be making these statements to help drop the price before purchasing it.
Bitcoin and Gold have had some correlation in recent times but not a strong enough to suggest that they have a long-term future together. Bitcoin promoters have long sought the crypto to be viewed as a viable safe haven like the likes of Gold, Silver and other valuable metals. However, this hasn’t been proven to be accurate despite some correlation. In the recent short-term crypto price tank, Gold also fell but less violently than Bitcoin itself.
Image source: Flickr
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