Peter Schiff (an investor known to be bullish on Bitcoin), in his recent interview hosted by Anthony Pompliano, against all odds, revealed his conditions for making purchases in the most prominent cryptocurrency. However, he advocated gold to hold even the least Bitcoin price.
The ideas of Peter Schiff regarding the inflation
Although the crypto community has rejected Schiff, his ideas about MMT (modern monetary theory) have some logical basis, and many of the crypto advocates admire them.
The principal factor of the MMT focuses that the governments are capable and ought to print money in as much proportion as they desire to because it would prevent them from bankruptcy. Putting it in simple words, the governments outspread their public debt to unlimited capacity.
During the previous 18 months, many of the governments have implemented this policy, especially the United States government. However, Schiff has cautioned that, in the future, many economic imbalances will be heightened by the implementation of this theory, and ultimately it will result in a collapse in the economy.
He added that there are many instances in history where printing money led to inflation, and it is a tariff onto itself. He elaborated that many currencies had crashed in the past for utilizing the MMT theory. The reason behind this is that you cannot prevent inflation by printing the money as it is bound to create inflation.
At the solution of the problem, Schiff and the advocates of Bitcoin vary to a great extent. Schiff is against Bitcoin (BTC) as he considers that it is an unreliable stock of value as well as it does not have any inherent value. He mentioned that money requires being a commodity by having a definite value of its own rather than depending on the other methods of exchange.
Schiff waits for BTC collapse
Although he maintains such an opinion about all the cryptocurrencies, even then, he presents an exceptional solution to this assumption by advocating for incorporating gold to back the cryptocurrencies.
In response to the question about his conditions to purchase BTC, he said that he is not in favour of wasting money on it. Moreover, he specified that he might reconsider his views to purchase one Bitcoin if it falls even down to $1.
Nonetheless, the conclusion that he provided signifies that he is not interested in buying even a single Bitcoin stating that it is not considered a commodity.