Peter Schiff, a well-known critic of Bitcoin and advocate for gold, has expressed regret for not buying the cryptocurrency back in 2010 when it was first introduced to him by a colleague. In an interview with Real Vision’s Raoul Pal on Impact Theory, Schiff admitted that he missed the opportunity to invest early in Bitcoin. He mentioned that he would have thrown significant amounts of money into it, potentially making him worth hundreds of millions of dollars today, assuming he didn’t sell. However, he also acknowledged that he doesn’t know what he would have done if he had made that decision.
This change of heart comes after Schiff previously referred to Bitcoin as a “pure ponzi” with no underlying value in a November 2021 interview with Yahoo Finance. However, in his recent interview, he revealed that he seriously considered buying Bitcoin when it was trading around $1 in 2010. Ultimately, he decided against it, deeming the potential investment as “ridiculous.”
Despite his regret, Schiff still doesn’t believe in the fundamentals of Bitcoin. He claimed that if he had purchased it, he would have kept quiet about it. He described a successful Bitcoin investment as making him feel more like a “genius” rather than a “gambler.” He also criticized Bitcoin investors, referring to them as “greedy” and “foolish.”
Schiff has consistently discouraged his audience from investing in Bitcoin, repeatedly labeling it as a “fools” investment. However, he has occasionally acknowledged that Bitcoin has defied his expectations by not collapsing. Nonetheless, he remains skeptical of its long-term prospects.
Interestingly, Bitcoin has emerged as a digital alternative to gold, with some analysts suggesting that it is eating into gold’s market cap since the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States. Schiff has acknowledged this shift but believes that investors may face difficulties cashing out their funds if Bitcoin experiences a major decline in value.
While gold has increased by 91.8% since the start of 2010, it has been outperformed by various index funds, including State Street’s Standard & Poors 500 ETF (SPY), which has seen a 350% increase over the same period.
Currently, Bitcoin ranks as the eighth largest asset by market cap, valued at $1.4 trillion, trailing behind gold, several U.S. tech stocks, and Saudi Aramco, according to Companies Market Cap data.
Overall, Schiff’s change of perspective highlights the growing influence and potential of Bitcoin in the financial world, even among its staunchest critics.