- Schiff marks Bitcoin fraud
- Why Bitcoin is not a scam
This time, Peter Schiff is criticizing Bitcoin once more, labeling it a fraud. The recent price collapse and Bitcoin’s performance in comparison to gold serve as the two pillars of his argument. Although it is noteworthy that Bitcoin fell below $90,000, a 28.5% decline from its peak, Schiff’s true concern is the gold ratio. Bitcoin’s price in gold has decreased by about 40%, while gold is still trading above $4,000.
Schiff marks Bitcoin fraud
According to Schiff, this reveals the digital gold narrative to be a fraud, an unsuccessful hedge and a damaged store of value. Schiff’s framing is entirely subjective. He is comparing Bitcoin to gold as a rival asset class rather than in terms of adoption, usefulness or network fundamentals. In this regard, his criticism is valid: Bitcoin has not proven to be a reliable inflation hedge, nor has it surpassed gold as a widely recognized source of value. That comparison is difficult to defend due to its volatility alone.
BTC/USDT Chart by TradingViewYou are underwater if you purchase close to the top, especially when compared to gold. However, the argument breaks down when Bitcoin is referred to as a fraud. Deception — a plan or a company purposefully fabricating something to deceive investors — is necessary for fraud. It is a decentralized system. There is no CEO, no business and no marketing division that guarantees particular profits.
For better or worse, its value is based on belief, conjecture and consensus. That does not make it fraudulent; rather, it makes it dangerous, erratic and even unstable. A malicious majority controlling the network or manipulating liquidity would have to be the source of any fraudulent dynamic, which has not occurred.
Why Bitcoin is not a scam
By design, the open ledger of Bitcoin is transparent. All coins are traceable. Each and every transaction is auditable. Although scam rug pulls and wash trading can happen within the Bitcoin ecosystem, Bitcoin itself is not a scam. Schiff is correct that Bitcoin’s current digital gold pitch is failing.
It is not as valuable over time as gold. Calling it fraud, however, is merely rhetoric and serves as a reminder that Bitcoin still has a lot to prove, particularly when compared to assets that do not require a bull cycle to remain relevant.
Source: https://u.today/bitcoin-is-fraud-says-peter-schiff-why-it-could-be-true
