Peter Schiff, a well-known Bitcoin critic, has expressed his doubts over the recent Bitcoin rally that catapulted the value of the cryptocurrency to $28,000 following news that major Wall Street firms have launched a new exchange of cryptocurrency.
Peter Schiff, Bitcoin Critic and Notorious Gold Bug cast doubt on the long-term sustainability of the recent Bitcoin rally that propelled the world’s largest cryptocurrency by market capitalization to $28,000.
This sudden rally was sparked by news of Wall Street giants such as Charles Schwab, Fidelity Digital Assets and Citadel Securities lending their support to a new cryptocurrency exchange called EDX.
However, Schiff remains skeptical of the sustained demand for this exchange, implying that more trading opportunities for Bitcoin will not generate longer-term interest in the flagship cryptocurrency.
Schiff sees the exchange as a gambling table for Bitcoin, suggesting that the cryptocurrency is played more as a high-risk chip than a safe, long-term investment or stable store of value. Schiff remains firm in his belief that, unlike gold, Bitcoin has no intrinsic value and is tossed about by the winds of speculative forces.
EDX, which now offers trading in four crypto assets, including Bitcoin and Ether, aims to meet the requirements of the world’s most sophisticated financial institutions looking to get into crypto.
This new platform signals a shift in approach to cryptocurrencies from traditionally conservative Wall Street firms. Schiff, a longtime bitcoin skeptic, however, predicts that this change could be fleeting.
Schiff’s caution is not unfounded. The crypto ship has weathered a series of storms in the recent past, including the sinking of FTX and recent SEC lawsuits against major players like Binance and Coinbase.
The stance of the gold bug is unsurprising, but many in the crypto industry interpret the entry of major financial institutions into the crypto arena as a huge step towards mainstream acceptance after a series of reverse.