The post Why Peter Schiff Is Wrong About Bitcoin and Inflation (Opinion) appeared on BitcoinEthereumNews.com.

The world’s leading cryptographic currency is trading over 40% higher than its average price on the eve of the November 5th US elections. Analysts agree that this is owing in large part to the promises of the Trump campaign and its allies to ensure that the federal government is fair to the innovative new Internet industry. But it’s also a repeat of a historic pattern in Bitcoin’s 4-year market supply cycle. Ark Invest’s Cathie Wood recently doubled down on her 2030 price target for Bitcoin. Last week, she told CNBC’s audience that if history continues to repeat itself, BTC will trade at $1 million by 2030. The blockchain money industry says that’s good news for the economy as well as the secure layer of the Internet they’re building for financial transactions. But not everyone agrees. Peter Schiff Casts Shade on Web3 Macro Economics The more resources Americans misallocate to #Bitcoin and #crypto-related businesses, the fewer resources will be available to devote to making stuff we actually need. The end result will be larger trade deficits, a weaker dollar, higher inflation, and a lower standard of living. — Peter Schiff (@PeterSchiff) November 20, 2024 Peter Schiff, founder and chief strategist of the Euro Pacific macro hedge fund, said in a post on X Wednesday that money spent on Bitcoin is a “misallocation” that will lead to inefficiencies in the economy. Schiff added that larger trade deficits, a weaker dollar, and lower GDP are the health of the Bitcoin regime. In another post Wednesday, Schiff remarked that Bitcoin will ironically become a source of inflation, even as buyers use the cryptocurrency as a shelter from dollar inflation. It’s ironic that many people bought #Bitcoin to hedge against inflation and a weakening dollar. Now, if the U.S. government actually buys Bitcoin, and diverts even…

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Filed under: News - @ November 24, 2024 2:04 pm