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(Kitco News) - The father-son duo of Peter and Spencer Schiff are now in alignment on their future outlook for Bitcoin (BTC) after the latter recently stated that the top crypto’s price “will probably fall to near zero over the next few years.”
The comment from Spencer came in response to an article posted by Zero Hedge entitled “The Two Causes Of The Coming Great Depression,” which he called “pure fearmongering.”
“We’re about to have an unfathomably enormous economic boom, not a depression,” Spencer said. “The average American’s standard of living will skyrocket over the next 5-10 years (and it will be 100% sustainable). There’s nothing to worry about regarding the economy.”
In response, Twitter user Tyler Pelletier said, “He thinks ai automation and Bitcoin will solve everything and we will see deflation. No explanation as to how he sees this happening.”
Spencer replied, “It’s not about Bitcoin at all. I don’t think Bitcoin will have a major impact on the world, and its price will probably fall to near zero over the next few years. My thesis is an AI thesis.”
Another user replied, in jest, “Hear me out… AI but on a blockchain,” to which Spencer shot back, “As far as I know, the only legitimate use for blockchain is bitcoin. Given that I’m now long-term bearish on bitcoin, that also means I’m long-term bearish on blockchain.”
While many were quick to jump in and suggest that Spencer had “fallen in line” with his father’s opinion on the matter, the younger Schiff pushed back against those claims, saying their views have actually become more divergent.
“I used to agree with him about the economy and I thought hyperinflation was coming,” Spencer said. “Now I think a permanent hyper-deflationary economic boom is coming, and the USD will soar in value as productivity, economic output, and our living standards all skyrocket.”
The pessimistic outlook for BTC is a stark change from the position that Spencer held for years that Bitcoin is an excellent long-term investment and inflation hedge.
On March 10, 2021, Peter Schiff tweeted, “My son @SpencerKSchiff went all in on Bitcoin on the last drop below $50k. 100% of his portfolio is now in Bitcoin. He sold the last of his silver stocks to raise the cash. If my own son is this brainwashed imagine how vulnerable most kids are. He's HODLing to infinity or bust.”
Even as recently as April 2023, Spencer said, “Long-term, Bitcoin is a much better buy than gold,” and added that the top crypto “is likely to demonetize gold in the long term.”
The Bitcoin chart shows that at the time of Peter Schiff’s tweet, Bitcoin was nearing the top of the market for the 2021 bull cycle. While there was a subsequent pump that topped out at $69,064, overall, the chart shows that Spencer went all-in near the top of the market, a common experience for many that FOMO into crypto during significant run-ups.
BTC/USD Chart by TradingView
The lengthy crypto winter that resulted in the value of portfolios declining by 50-90% has turned many off from the asset class, and it looks as though Spencer may be the latest investor incapable of appreciating the volatility that comes with investing in cryptocurrencies.
Spencer told CryptoPotato that while he now agrees with his father’s long-term price forecast for Bitcoin, he thinks Peter Schiff reached his conclusion “only by accident.”
“My dad’s anti-bitcoin arguments are really bad and don’t even make sense,” he said. “He’s completely wrong about the economy and I strongly discourage people from following his investment advice.”
Peter Schiff responded to his son’s about-face on Bitcoin by saying like many young people, Spencer got caught up in a popular fad that has since lost his attention as he moved on to the next fad, artificial intelligence.
My son @SpencerKSchiff went all in on #Bitcoin on the last drop below $50k. 100% of his portfolio is now in Bitcoin. He sold the last of his #silver stocks to raise the cash. If my own son is this brainwashed imagine how vulnerable most kids are. He's HODLing to infinity or bust.
— Peter Schiff (@PeterSchiff) March 10, 2021
