Bitcoin ‘Failed Safe Haven Test’ After 7% Drop, Peter Schiff Gloats (#GotBitcoin?)
Bitcoin (BTC) has shown it is not a safe haven asset, gold bug Peter Schiff has said after the largest cryptocurrency dropped 7% in daily trading. Bitcoin ‘Failed Safe Haven Test’ After 7% Drop, Peter Schiff Gloats (#GotBitcoin?)
In a tweet on Aug. 28, Schiff, who has become increasingly known as a Bitcoin naysayer, claimed BTC/USD dipping below $10,000 once again on Thursday put pay to theories it functioned as a hedge against fiat volatility.
Schiff: Bitcoin “failed safe haven test”
“Bitcoin has again failed the safe haven test. On Friday, as escalating trade tensions sent global stock markets plunging, investors sought refuge in monetary safe havens. The Japanese yen, Swiss franc, and especially gold all moved higher.
Yet Bitcoin plunged by more than stocks!” he wrote.
Schiff was referencing a popular theory about Bitcoin investment habits which has surfaced over the past two months.
Against the background of the United States-China trade war, tensions in Venezuela and unrest in Hong Kong, commentators declared Bitcoin offered an option to preserve wealth for those in affected regions.
As Cointelegraph noted, overall Bitcoin network volatility hit new two-month lows last week.
Now, however, the fresh move down spurred critics such as Schiff, who continued:
“Since last Thursday Bitcoin has lost more value than any of the major stock market indexes, while gold and silver have gone up.”
His argument, however, was lost on Bitcoin proponents. Responding, the Twitter account known as Parabolic Trav rebutted Schiff on Bitcoin’s intrinsic value.
“Why on earth would Bitcoin be a safe haven? Bonds are the safe haven in the current paradigm. Nor is gold a safe haven,” he wrote.
The bonds comments came as the U.S. Treasury Secretary, Steven Mnuchin, revealed the government was considering ultra-long bonds of 50 or 100 years.
In an event which could have contributed to Bitcoin’s fall, issuance of such bonds would decrease borrowing costs for Washington and limit taxpayer exposure to the U.S.’s almost trillion-dollar annual budget deficit.
“Bitcoin is simply, over time, ‘number go up,’” Trav meanwhile continued in an attempt to deflate Schiff. He concluded:
“If you try to fit it into the legacy financial analysis box, you’ll be rekt Which is what you are Pete!”
Bitcoin Has Failed But Global Stablecoins A Threat, Say BIS And G7
Bitcoin and other early cryptocurrencies have failed as an “attractive means of payment or store of value,” says a new report from the G7 and Bank of International Settlements (BIS).
However, the October report, argues that widely adopted asset-pegged cryptocurrencies, or stablecoins, such as Libra are a growing threat to monetary policy, financial stability and competition.
Widely adopted stablecoins, dubbed “global stablecoins” in the report, have the potential to reach an international audience and have “significant adverse effects” on the current economic system, it argues.
Meanwhile, “[first generation cryptocurrencies like bitcoin] have suffered from highly volatile prices, limits to scalability, complicated user interfaces and issues in governance and regulation, among other challenges. Thus, cryptoassets have served more as a highly speculative asset class for certain investors and those engaged in illicit activities rather than as a means to make payments.”
Stablecoin taxonomy – defined as a money equivalent, contractual or property claim, or right against an issuer for an asset – will remain a preeminent legal question for the time being, the report continues. The effects of stablecoins on incumbent money systems such as wire transfers have yet to be fully understood as well.
While stablecoins may offer faster, cheaper and more inclusive payments, they can “only be realized if significant risks are addressed.”
In a footnote, the G7 report says the Swiss Financial Market Supervisory Authority’s (FINMA) handling of the Libra Association, which falls under the regulator’s purview in Geneva, agrees with the G7’s stablecoin recommendations.
FINMA recently said Libra highlights the need for international coordination and “appropriate prudential requirements” for all services offered over that of a payment system.
The report on stablecoins was prepared at the request of the G7 in July, soon after the launch of Libra back in June. While obviously directed in part at the project, the report only mentioned Libra in one footnote.
Responding to the G7, the Libra Association sent out a memo Friday saying the stablecoin is “not intended to change the role and influence of central bankers,” adding:
“Wallets and other financial services operating on the Libra Network (including exchanges and other on and off ramps) will have to comply with regulations, such as local capital controls, which can be tailored to prevent large scale flights from local currency to Libra coins in emerging markets.”
‘OK Doomer’ — Peter Schiff Is Convinced Bitcoin Will Now Crash to $1K
Bitcoin (BTC) proponents have ridiculed one of the cryptocurrency’s most infamous critics after he delivered a highly bearish price prediction.
In a Twitter debate on Nov. 21, commentators joined forces against Peter Schiff, who claimed BTC/USD was set for a dive as low as $1,000.
Schiff: $1,000 Would “Complete The Pattern” For BTC
Arguing current price action correlated to a “head and shoulders” formation, the gold bug forecast a dramatic downturn would characterize markets in the future.
“#Bitcoin is nearing the neckline of the head-and-shoulders top I pointed out before the Oct 25th 40% pump. The right shoulder is now shrugged and the neckline slanted and parallel to the shoulders. If it breaks the price objective for the dump is $1,000 to complete the pattern.”
In a further post, he doubled down on his position. “The picture really doesn’t look any better if your long Bitcoin!” he wrote.
Another attempt saw Schiff take a photograph of a Bitcoin price chart on his computer screen, which led to ridicule.
A History Of Failed Price Predictions
Schiff is well known for his dubious Bitcoin price commentaries. Despite appearing convinced Bitcoin is doomed to fail, previous insights have proven false, something which was not lost on its supporters.
Responding to the latest tweet, the trader known as CryptoBull produced a BTC/USD chart which combined price movements with Schiff’s predictions. Schiff has yet to guess the market trajectory correctly.
Other, longer-term warnings from Schiff include Bitcoin never reaching $50,000, while gold should top $5,000. In late October, during the upward price move he referenced in Friday’s tweet, Schiff accused investors of manipulation as BTC gained 30% over gold.
Bitcoin ‘Suckers’ Are Wrong About Safe Haven Status — Peter Schiff
Bitcoin (BTC) naysayer Peter Schiff has taken the opportunity to pour scorn on cryptocurrency investors after fresh price losses this week.
In a series of tweets beginning Feb. 25, Schiff, well known as a gold proponent, claimed Bitcoin’s volatility made it inferior to the precious metal.
Schiff: Bitcoin As A Safe Haven Is “Nonsense”
BTC/USD has seen considerable selling pressure since the weekend, losing almost $1,000 over the past three days.
“Bitcoin promoters claim #Bitcoin has proven itself to be superior to #gold as a safe haven and store of value. This is nonsense,” one post reads.
“Bitcoin hasn’t been around long enough to prove anything other than P.T Barnum right. There’s a sucker born every minute and many of them own Bitcoin.”
While Schiff is in fact among those who own Bitcoin, his interaction has been marred by a lack of understanding of how even basic consumer wallets work. As Cointelegraph reported, Schiff railed against wallet provider Blockchain after he failed to unlock his wallet. He ultimately admitted that he had confused his pin with his password.
Nonetheless, Schiff remains convinced that gold is a superior investment and that Bitcoin is far from its digital equivalent.
Pomp Gets A Fresh Grilling
Fuelling his argument this time was a recent CNN appearance by Morgan Creek Digital co-founder, Anthony Pompliano, with whom Schiff had debated Bitcoin on air last year.
Pompliano described Bitcoin as a “non-correlated asset,” which is of use to investors because it reacts differently to events compared to gold, stocks and other traditional punts.
“As long as it’s preserving your wealth or increasing it, that non-correlation makes it a safe haven asset,” he summarized.
For Schiff, however, this was not convincing enough.
“On CNN @APompliano admitted that #Bitcoin isn’t a safe haven asset, but a non-correlated asset, meaning regardless of what other assets do, Bitcoin is as likely to go down as up,” he claimed on Wednesday.
“So the value of Bitcoin is that no one has any idea what its price will do. What’s that worth?”
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