Ditch "Fake Gold" For "Real" Gold, Says Peter Schiff on Bitcoin
(Kitco News) - The cyrptocurrency community may not be getting a new recruit from Peter Schiff after all. The CEO of Euro Pacific Capital said that bitcoin is “overhyped, digital nothing” and he doesn’t plan on buying any in the foreseeable future.
“I think it’s funny that the people in the bitcoin community are creating this fake news story that somehow I’m now a convert and I’m a secret bitcoin hot alert. There’s nothing secret about it, yes, I’ve been gifted some bitcoin, so what? I’ve never actually purchased any, nor do I actually intend to purchase any bitcoin,” he said.
In fact, Schiff said he wants to convert bitcoin investors to gold.
“I want to help people make the conversion from fool’s gold into real gold,” he said.
Schiff added that much of the crypto news out there is “fake”, intended to create a fear of missing out so that people will rush in and buy it.
Essentially, bitcoin is a “pump and dump scheme” with nothing fundamental driving the price, Schiff said.
Adding to bitcoin’s complications is the prospect of higher government regulations in the future, he noted.
“I do think that the situation is going to be complicated by the regulators, which I believe are really getting ready to crack down on bitcoin and other cryptocurrencies and this is going to make it harder for new money to come in, which of course will complicate the efforts of old money to get out,” he said.
Schiff said that he supports the free markets and that governments should not outlaw cryptocurrencies, even though illicit activities may be linked to crypto transactions.
“I support the free markets. I’m not saying the government should outlaw bitcoin or any of these other coins and I’m happy with Facebook coming up with what I believe would be superior to bitcoin because it would be a digital currency backed by something,” he said.