A prominent economist and Bitcoin (BTC) skeptic, Peter Schiff, has lately delivered an uncertain prediction.
Schiff has stated his conviction in a series of social media postings that the impending regulatory reforms, led by SEC Chair Gary Gensler, might have a major influence on the feasibility and cost of Bitcoin transactions.
“I think [Gensler] will soon introduce new onerous crypto regulations that will substantially increase the cost of Bitcoin transactions, further undermining its ‘use’ case, resulting in a sharp decline in price,” stated Schiff.
The possibility of the SEC implementing strict new bitcoin restrictions is Schiff’s principal source of anxiety.
He thinks these rules would make Bitcoin’s transactions far more expensive, which would reduce its value and cause its price to fall sharply.
Schiff draws his forecast from Gensler’s previous moves on spot Bitcoin ETF clearance, which he perceives as a reluctance to fully commit that would lead to more stringent regulatory actions.
During these discussions, a number of people on social media brought up Gensler’s earlier labeling of Bitcoin as a commodity.
This classification may make stringent SEC regulation difficult. Nevertheless, Schiff contends that securities law may take a back seat to anti-money laundering (AML) legislation in the wake of new laws. While making other remarks, Schiff has maintained his skepticism about Bitcoin’s worth and practicality.
He has brought up the difficulties and expenses of purchasing Bitcoin directly, stating that the need of third-party custodians goes against the idea of it, which was to eliminate middlemen. An investor named Mohamed El-Erian shared Schiff’s doubts about Bitcoin’s practicality as money and the reasoning for Bitcoin exchange-traded funds (ETFs) on CNBC.
Moreover, according to Schiff, the majority of funds flowing into Bitcoin ETFs are really misdirected capital from other Bitcoin proxies. He compares this to shifting deck chairs on a ship that is sinking.
He doubts Bitcoin’s practicality and its ability to hold value when contrasted with more conventional assets like gold.
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