Once a staunch laser-eyed Bitcoin (BTC) bull, Spencer Schiff — son of crypto critic and gold bug Peter Schiff — now agrees with his father that Bitcoin’s price is heading towards zero.
His reasoning, however, differs greatly from that of his father, who he says is “completely wrong on economics”.
Are you no longer a fan of Bitcoin?
Spencer Schiff expressed his new take on Bitcoin in response to ZeroHedge on Twitter, which posted a blog post predicting an impending “Great Depression.”
The first strongly disagree, saying the economy was about to enter “an unfathomable and enormous economic boom” that would dramatically boost the standard of living for the average American. However, according to him, this boom will not concern Bitcoin:
“I don’t think bitcoin will have a major impact on the world, and its price will likely drop to near zero in the next few years,” he said. predicted Tuesday. “My thesis is an AI thesis.”
My changing views have nothing to do with the bear market. I was still very bullish on bitcoin the day it bottomed out late last year. I even convinced my mother to buy some at the very bottom. The only reason I don’t care about bitcoin anymore is the AI. If it wasn’t for AI, I’d still be…
—Spencer Schiff (@SpencerKSchiff) July 19, 2023
Spencer Schiff has been of the opinion for years that Bitcoin is an excellent long-term investment and hedge against inflation. In March 2021, his father claimed he had gone “all in” on Bitcoin shortly after Bitcoin’s price fell below $50,000.
Although Bitcoin’s price has fluctuated much lower since then, he said as recently as April 2023 that Bitcoin was “likely to demonetize gold” in the long run. Both assets are often compared to inflation hedges due to their limited supply compared to fiat currencies.
While Schiff once believed that irresponsible monetary policy would soon lead to hyperinflation of the US dollar, he now claims that productivity gains from artificial intelligence will trigger exponential productivity growth that will solve all societal problems related to the ‘inflation.
“No matter how much they print, prices are still going to crash,” he said. “Central banks don’t matter anymore. Annual economic output is poised to increase 1,000 times over 2023 output. Possibly 1,000,000 times higher by 2040.”
not like his father
In a response to CryptoPotatoSpencer Schiff clarified that if he now thinks his father’s long-term price prediction for Bitcoin is correct, it’s “only by accident”:
“My dad’s anti-bitcoin arguments are really bad and don’t even make sense,” he said. “He’s completely wrong about economics and I strongly advise people against following his investment advice.”
Peter Schiff has lambasted Bitcoin investors for over a decade for thinking the asset could be efficient money, arguing that it lacks “intrinsic value”. On the other hand, his son still believes that Bitcoin is a superior currency to the dollar, but that its advantages will be “trivial” thanks to AI seismic increases in global productivity.
In April, Peter Schiff applauded AI bot ChatGPT for seemingly recommending gold as an investment over Bitcoin. Nonetheless, he still claimed that AI was a “passing fad” on Wednesday, and that much of his young fan base will outgrow the technology – like with Bitcoin.
My son @SpencerKSchiff is no longer bullish on #Bitcoins. As young people usually do, he lost interest in a passing fad and moved on to something new. In this case it is #AI which captured his attention. As Bitcoin’s young fanbase matures, many more will come out of Bitcoin.
— Peter Schiff (@PeterSchiff) July 19, 2023
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