During a recent conversation with cryptocurrency influencer Michael Jerome (known as @notthreadguy), gold bug Peter Schiff stated that he is still convinced that Bitcoin will “eventually” plunge to zero.
“I still think that it is eventually going to zero, so I don’t think that I got that wrong. What I did get wrong was underestimating the gullibility of the public to buy it,” Schiff stressed.
Schiff has acknowledged that those who got into Bitcoin early did “a great job” of selling the story and “getting people to buy what they wanted to get rid of,” he stressed.
The controversial financial analyst is convinced that this is a “gigantic pump-and-dump.”
According to 10x Research, persistent sales by O.G. whales are believed to be one of the main reasons why Bitcoin is struggling to hold the $110,000 level.
Schiff has also noted that Bitcoin is down 30% from its peak price in gold, which recently logged a series of record highs.
Looming economic crisis?
The permabear has also warned about a looming US economic crisis that will make 2008 look like a “Sunday picnic.”
He has predicted that the next crisis will be in U.S. Treasuries instead of subprime mortgages.
Schiff is convinced that people will eventually lose faith in the US government’s ability to pay bills.
“There’s going to be a run on treasuries. People, you know, the world is not going to want to buy treasuries. The world is not going to want to own US dollars,” Schiff predicts.