Recently, Peter Schiff shared his belief that global economies will soon turn to digital gold as an option. Schiff made the remarks during a recent interview about the future of the virtual asset industry with Deputy Editor at Forbes Advisor Mike Adams.
However, he doubted Bitcoin’s potential as a future digital currency. Schiff mentioned that people might begin transacting in virtual gold through private firms that tokenize the metal or through blockchain technology.
He attributed his prediction to the rapid devaluation of the dollar. Schiff predicts that the world will eventually leave fiat currencies and return to exchanging in gold.
He also dismissed the idea of Bitcoin as a viable option.
The Declining Value Of The Dollar
Schiff warned that the US is battling rising inflation and that the dollar risks being devalued like currencies in Argentina. Hence, he argued that holding short-term funds in dollars is no longer viable.
Therefore, Schiff suggested the idea of transitioning towards virtual gold. He had earlier mentioned that the appeal of the valuable metal had decreased around the crypto bull market of 2021.
During the interview, Schiff explained that investors overlooked gold due to many investors’ attention given to Bitcoin. Many proponents have compared Bitcoin to gold, claiming it could eventually replace the precious metal and serve as the supreme value store.
Age-Old Objections To Cryptocurrency
The critic’s negative perspective on Bitcoin’s potential as a widely used digital currency is consistent with his age-old objections to cryptocurrency. He has often urged investors to trade their BTC holdings for gold, arguing that BTC’s value will eventually drop to zero.
In the past, Schiff claimed that the previous BTC bullish run was a castle in the air that would eventually burst. According to him, the significant correction noticed last year was caused by a massive pump-and-dump scheme.
Schiff highlighted that although the crypto market accomplished a surge in value, investors failed to acknowledge the subsequent decrease in value. Additionally, Schiff has predicted that the global economy will continue to deteriorate, significantly affecting the already troubled banking system in the United States.
Schiff stated that he had notified investors to prepare for a more significant collapse in the nation’s banking system.