Peter Schiff Doubles Down on Sentiment That Bitcoin Is a “Pyramid Scheme”

Peter Schiff Doubles Down on Sentiment That Bitcoin Is a “Pyramid Scheme”

Despite a decade-long track record and growing adoption as a medium of exchange and store of value, Bitcoin is still seen as a pyramid scheme by some.

One such individual that still sees the leading cryptocurrency in that light is Peter Schiff, the chief executive of Euro Pacific Capital and a long-time gold bull. Schiff is also one who predicted the 2008 Great Recession a few years before it happened.

BTC Is A Pyramid Scheme? Peter Schiff Thinks So

In a comment published July 18th, Schiff doubled down on his sentiment that Bitcoin is a pyramid scheme that is predicated on the deposits of others to succeed:

“The very nature of #Bitcoin requires owners to encourage new buyers to enter the market. Without new buyers coming in, there is no way for existing HODLers to get out. As with any pyramid scheme, success is only possible for those who get in early if lots of others get in late.”

This comes shortly after he stated that he doesn’t think Bitcoin remains in a macro bear market that will eventually lead it towards the $3,000s and even lower.

As reported by NewsBTC previously, Schiff said:

“So far. That low will not hold much longer. The #Bitcoin bear market has a long way to run.”

Schiff’s assertion that Bitcoin is currently in a bear market has been confirmed by a trader following the crypto space closely. Per previous reports from NewsBTC, that trader said:

“Allow me to explain: BTC hasn’t made a higher high in a full year, so per definition, it’s not a bull market. BTC has made lower lows and lower highs consecutively for a full year, so per definition, it’s a bear market,” he wrote referencing the chart below that shows BTC’s price action and macro phases.

Bitcoin Gaining Adoption From Wall Street

Despite Schiff’s bearish sentiment about the leading cryptocurrency, it is gaining adoption from Wall Street and from Silicon Valley.

Grayscale Investments, a digital asset manager whose clients are mostly institutions, reported last week that it saw a record quarter of investment.

“Grayscale recorded its largest quarterly inflows, $905.8 million in 2Q20, nearly double the previous quarterly high of $503.7 million in 1Q20. For the first time, inflows into Grayscale products over a 6-month period crossed the $1 billion threshold.”

There’s also Fidelity Investments, the $2 trillion asset manager. It reported that per recent survey results, around 80% of all institutions surveyed see at least one value proposition in cryptocurrencies. These value propositions include it being uncorrelated, it being an innovative technology play, or it having long-term upside potential.

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