Peter Schiff Calls Bitcoin a 'Fake Asset' as Gold, Silver Rally While Crypto Dumps

Source: CoinEdition Original Title: Peter Schiff Calls Bitcoin a ‘Fake Asset’ as Gold, Silver Rally While Crypto Dumps Original Link: https://coinedition.com/schiff-calls-bitcoin-fake-labels-microstrategy-a-ponzi-scheme/

Peter Schiff Slams Bitcoin as “Fake Asset” While Gold and Silver Rally

Peter Schiff, one of Bitcoin’s fiercest critics, has continued to slam the cryptocurrency amid declining prices. Bitcoin crashed by 5% in the early hours of Monday, returning below the $90,000 landmark to trade for $86,547 at the time of writing, according to data from TradingView.

Bitcoin isn’t selling off because it’s a risk asset, but because it’s a fake asset. The NASDAQ is less than 2% from its record high, yet Bitcoin is 28% below its record high. This shows that there’s more than just risk-off at play. This is a rotation from fake to real assets.

Bitcoin Described as “Fake Asset”

Schiff described Bitcoin as a “fake asset” rather than a risk asset in his latest commentary. According to the renowned Bitcoin critic, the cryptocurrency’s latest decline is unusual for a risk asset. He compared BTC with NASDAQ, which fell by less than 2% from its record high, while Bitcoin dropped approximately 28% under similar circumstances.

According to Schiff, Bitcoin’s behavior reflects something more than just risk-off play. He believes the ongoing situation consists of capital rotation from “fake” to real assets. In a separate but related post, Schiff attacked a major exchange’s CEO for claiming that the company’s business issues digital credit by selling preferred stock that pays 8% or 10% dividends.

Ponzi Scheme Accusations

Schiff accused the exchange of having no income. According to him, the firm operated a Ponzi scheme with no other income apart from selling Bitcoin and could only pay dividends by selling more preferreds. This opinion did not sit well with some crypto community members, one of whom outlined the exchange’s operational structure, clarifying that the project is not fraud, but a highly leveraged investment.

Gold and Silver Surge While Crypto Dumps

Typical of Schiff’s Bitcoin criticism, he compared the cryptocurrency with Gold and Silver, alongside other mainstream digital assets. For instance, Schiff noted that the Japanese Government Bond (JGB) 10-year yield is at 1.84% and rising, causing investors to sell their risk assets.

Schiff further noted that stock futures are down alongside Bitcoin and cryptocurrency, while Gold was up by over $20 at the time of his post and trading for $4,240. Silver surged $1.20 over the same period to trade for $57.50.