Bitcoin is ‘a failure’: Peter Schiff – Does he have a point?

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  • Exec highlighted that Bitcoin halving slowed down the network.
  • Schiff sees a somber future for the king coin.

In April, the long-awaited Bitcoin [BTC] halving came to an end, sparking great interest and anticipation. Various analysts and industry professionals voiced their positive outlook on the future of this digital currency.

Yet, it’s important to note that there’s another perspective on this issue. Peter Schiff, the Chairman of SchiffGold and a skeptic of cryptocurrencies, recently expressed his concerns about Bitcoin’s high transaction fees on X (previously known as Twitter). He pointed out that these fees have increased since the last halving event.

“Currently, the fee for carrying out a Bitcoin transaction amounts to $128 and it takes approximately 30 minutes to be processed. This issue highlights one of the drawbacks of Bitcoin not being able to effectively operate as a digital currency. The expense associated with using Bitcoin for most transactions is impractically high, making it unsuitable for widespread use.”

After the halving event, the cost of a typical transaction with medium priority increased to approximately $146, and transactions with high priority reached over $170 in fees.

Tokenized gold over Bitcoin

The argument between gold and Bitcoin as valuable assets has been ongoing for some time. Schiff, who supports gold, discussed its potential role as a currency.

The exec commented, 

Currently, gold isn’t functioning as a currency for most people. However, if there was a desire to do so, gold could be represented digitally on a blockchain as a token. The transactions would take place nearly instantly and with very little cost. Compared to Bitcoin, gold operates more effectively within the framework of a blockchain.

Due to the persistent political unrest, the cost of gold momentarily peaked above $2,400 per ounce. Conversely, Bitcoin’s value was dropping during the same period.

As of this writing, gold was valued at $2,539/ounce, while BTC exchanged hands at $65,992.

Schiff’s BTC price prediction

In the cryptocurrency market, optimistic views towards Bitcoin’s price have continued to prevail based on chart analysis. Notably, investor Peter Schiff has identified $60,000 as an essential threshold to keep an eye on.

Support for Bitcoin at the $60,000 mark is crucial. If Bitcoin fails to hold this level, it could lead to a significant reversal with potential consequences including a triple top formation. In such a scenario, Bitcoin’s price might drop as low as $20,000.

MicroStrategy owns approximately 1% of the total Bitcoin supply, amounting to around 214,000 coins. The average price paid for these coins was $34,000 per coin.

If Bitcoin’s value dropped to $20,000, the company would incur an estimated loss of approximately $2.7 billion on their current holdings.

According to AMBCrypto’s latest assessment, the price could bounce around in a narrow range between its all-time high of $61K and current support level.

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2024-04-22 21:11