The crypto sector is clocking massive liquidations owing to the fall of Bitcoin. The asset’s price has plunged from over $116,000 ten days ago to $89,000 this week – triggering an extreme fear sentiment among traders. Peter Schiff, famed American economist and an avid Bitcoin critic has grabbed the opportunity to take a dig at Bitcoin enthusiasts.
Schiff, who supports gold as a more stable asset than Bitcoin, said that advocating Bitcoin as “digital gold” is a fraudulent hype. Opposed to the “buy” sentiment that was propagated by crypto biggies like Binance CEO Richard Teng and Strategy chief Micheal Saylor, Schiff said those who hold BTC at present, will end up selling the token.
Comparing Bitcoin’s price to that of gold, Schiff posted on X that, “Bitcoin’s collapse relative to gold exposes the digital-gold hype as a fraud.”
Source: X/ @PeterSchiff
At the time of writing, BTC was trading at $91,500 with a seven-day price dip of 12.3 percent. Gold, meanwhile, rose in price by around one percent in the last 24 hours to retail at $4,083/oz.
Source: CoinMarketCap
Source: GoldPrice
Schiff is presently working on SchiffGold – a platform that will issue tokenized gold tokens. He believes that gold’s ability to maintain its purchasing power, its digital storage on blockchains makes sense. Through this platform, Schiff plans to let users purchase and store real gold in a vault – allowing cost efficient, almost instant transfers and redemption of real gold.
Binance founder Changpeng Zhao (CZ) had reacted to Schiff’s upcoming venture as a ‘trust me bro’ token’, citing the reliance of these tokens on centralized entities for storage and redemption. CZ said, this is what distinguishes decentralized BTC from these tokens.
Schiff and CZ are set to debate on BTC v/c tokenized gold at the upcoming Binance Blockchain Week (BBW) in Dubai next month.