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Could Bitcoin Ever Skyrocket To $10 Million? Possible, But Based On This Condition

Peter Schiff, a well-known critic of Bitcoin, recently engaged in a thought-provoking discussion about Bitcoin’s value relative to gold. Despite his longstanding skepticism, Schiff has presented a scenario where Bitcoin could reach roughly $10 million by 2031.

However, the Bitcoin critic responded that this could happen under particular economic conditions.

Schiff’s Extreme Hypothesis On Bitcoin’s Ascent To $10 Million

This bold statement arises from the Economist’s comparison of Bitcoin’s potential growth trajectory to gold, highlighting the volatility of crypto assets and the spirited optimism of their proponents.

Commenting under this post, an X user asked, “What if Bitcoin goes to $10,000,00 by 2031?” Schiff then replied with a “hypothetical” scenario that pivots on the dramatic collapse of the US dollar, akin to the fate of the German Papiermark post-World War I. During that period, Germany experienced rampant hyperinflation, devastating the value of its currency.

Schiff suggests that only if a similar downfall of the US dollar happens does the BTC price catapult to $10 million. However, it’s important to note that this scenario is highly “hypothetical,” and the crypto critic is trying to convey that Bitcoin can only reach $10 million in an “extreme” case of economic turmoil.

Community Reactions To Schiff’s Post

Notably, Schiff remains a staunch critic of Bitcoin. He recently expressed concerns about potential regulatory changes under the Securities and Exchange Commission (SEC) Chair Gary Gensler. He predicted increased regulations could raise Bitcoin’s transaction costs and adversely affect its market value.

The crypto community, however, often counters Schiff’s bearish outlook with a mix of criticism and humor. Influential figures like Samson Mow and Mike Alfred have directly responded to Schiff’s comparisons between Bitcoin and gold, often highlighting Bitcoin’s resilience and growth over the years.

Mow, in particular, has pointed out that once Bitcoin surpasses gold’s market cap, gold could be relegated to its “industrial utility cost.”

These responses from the crypto community showcase the strong belief in Bitcoin’s potential and its role in shaping the future of global finance.

Meanwhile, in the current market, BTC has shown signs of recovery. At the time of writing, Bitcoin is trading above $40,000, a notable increase from its earlier values of below $39,000 earlier this week.

Bitcoin (BTC) price chart on TradingView.com

Featured image from Unsplash, Chart from TradingView

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Renowned Economist Explains Why Grayscale’s Win Is Not Good For Bitcoin Price

One of the major highlights of Grayscale’s victory over the US Securities and Exchange Commission (SEC) was its positive effect on Bitcoin’s price. However, renowned economist Peter Schiff has explained why Grayscale’s win may not be good for Bitcoin in the long run. 

A GBTC ETF ‘Bearish’ For Bitcoin

Schiff tweeted that the GBTC fund becoming a spot ETF (Exchange-traded Fund) is “actually bearish” for the flagship cryptocurrency as he said this move could potentially increase Bitcoin’s “tradable supply.”

If approved, investors in the GBTC fund will now be able to redeem their Bitcoin, which Schiff has highlighted is bad for Bitcoin’s price and the market as GBTC will have to sell BTC into the market, thereby increasing the tradable supply. 

Schiff’s concern probably stems from the fact that GBTC reportedly owns over 3% of Bitcoin’s circulating supply, so a sell-off due to redemptions could significantly impact the market, causing Bitcoin’s price to reduce.

However, other X (formerly Twitter) users quickly pointed out that other ETF applications will likely be approved alongside Grayscale’s application. As such, there will be enough demand to balance out the increase in supply that could result from Grayscale’s redemptions. 

Grayscale had applied to the SEC to convert its GBTC fund into a Spot Bitcoin ETF. However, the regulator rejected the application, leading Grayscale to file a lawsuit against the SEC, stating that the Commission acted arbitrarily and capriciously in its disapproval order. 

Following the Appeal court’s ruling in favor of Grayscale, the SEC now has to review the asset manager’s application again with the possibility of an approval higher this time. This is because Grayscale has been able to establish before the court that it should enjoy the same treatment given to Bitcoin Futures ETF which the Commission has had no problem approving. 

Bitcoin price chart from Tradingview.com (Grayscale)

The SEC’s Next Steps

Legal expert Jake Chervinsky also chimed in to state that the court delivered a “huge embarrassment” for the SEC. As to the next steps that the regulator might take, Chervinsky highlighted four theories.

Firstly, he believes the SEC could just pick another reason to deny Grayscale’s proposal, which could lead to another long-running legal battle between both parties. Apparently, the court had ruled that the Commission didn’t provide sufficient reason to deny Grayscale’s application as it faulted the “significant market” test size as wrong. 

His second theory is that the SEC will choose to abide by the court’s decision and use that as an excuse to drop its “anti-ETF position.” 

Furthermore, the legal expert noted that the SEC may have no choice but to approve the pending ETF applications as there is “political pressure” on the SEC. According to him, the world’s largest asset manager, BlackRock, and its CEO, Larry Fink, are lobbying for their application to be approved.  

Lastly, Chervinsky believes that the SEC’s Chair Gary Gensler could use this to spin the anti-crypto narrative by approving these ETFs to show that the Commission is willing to approve products that abode by their regulations. 

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Economist Peter Schiff Calls Bitcoin An ‘Imaginary Friend’ In Response To Jack Dorsey’s Hyperinflation Tweet

Peter Schiff is an economist, gold advocate, and one of Bitcoin’s biggest critics. He has never liked the digital currency.

He believes that real value is derived from an asset’s ability to create commercial demand in markets; and always refers to gold as a perfect example of this. In contrast, he says that Bitcoin is nothing but an asymmetric store of value with no other use except attracting an endless supply of buyers for the limited supply of assets. In short, it is a Ponzi scheme. However, he has been proven wrong over and over again.

In his most recent critique of Bitcoin, Schiff said it is not a real asset. This was in response to a tweet by Twitter CEO Jack Dorsey about the possible arrival of hyperinflation in the U.S. soon.

Schiff Responds To Dorsey

On Saturday, October 23, Jack Dorsey shared his opinion on the current economic situation in the U.S on Twitter. He tweeted about the imminent hyperinflation as a result of the constant money printing in the U.S., and how the rest of the world would suffer from it.

Related Reading | Is Hyperinflation Inevitable? Jack Dorsey Says It’ll “Change Everything”

In response, Schiff tweeted that people should not look to Bitcoin to save them because it is not a real asset. Instead, they should own real assets like gold.

Just don't expect to find any refuge from it in #Bitcoin. To protect yourself from #hyperinflation you'll need to own real assets. #Gold qualifies, but Bitcoin does not.

— Peter Schiff (@PeterSchiff) October 24, 2021

Another Twitter user commented that Bitcoin is, in fact, real. And that it has just surpassed the Swiss Franc in Market cap. At this point, Schiff replied, calling the cryptocurrency a “make-believe asset” and that it is the adult version of an imaginary friend.

#Bitcoin is a make believe asset. Sometimes kids have imaginary friends. It's the same concept, except with adults.

— Peter Schiff (@PeterSchiff) October 24, 2021

Peter Schiff’s Grudge with Bitcoin

According to this Wikipedia profile, Peter Schiff is an American stockbroker, financial commentator, and radio personality. He is also CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut. Additionally, he is involved in various roles in other financial services companies, including Euro Pacific Asset Management, an independent investment advisor, Schiff Gold (formerly Euro Pacific Precious Metals), a precious metals dealer, and Euro Pacific Bank, a full-reserve bank.

In addition to all these, Schiff is known for something else – his grudge with Bitcoin. He has always claimed its value will one day drop to nothing.

Earlier this year, Mark Cuban told Schiff to “move on” because “gold is dead.” In Response,  Schiff said, “Mark, a lot of your athletes wear gold jewelry. Ask them why. Gold has many uses outside of jewelry that contributes to its value as a metal. It’s not hyped at all. Gold is money. Bitcoin is 100% hype. It’s nothing.”

Related Reading | Mark Cuban Slams Peter Schiff: Gold is Dead, Bitcoin and Ethereum Are Today

Cuban himself used to be a bitcoin skeptic, preferring bananas to bitcoin because he claimed he could at least eat a banana.

In an interview on Good Evening San Diego a few days ago, Schiff referred to Bitcoin as a fool’s gold and a digital pyramid scheme. He also said that the SEC should not be encouraging people to participate.

BTC trading at over $62K | Source: BTCUSD on TradingView.com

When asked about the SEC’s recent approval of Bitcoin ETFs, he responded that “we should get rid of the SEC”.
He continued by saying, “I have no problem with the ETF itself, but if the SEC is pretending that it is some kind of watchdog and trying to make sure that investors don’t get hurt, then it makes no sense that they would approve this ETF because ultimately, the ETF is going to collapse to zero and the people who are left holding the bag are going to get wiped out.”

Schiff is also not impressed with futures ETFs. He says, “instead of owning nothing, you own a futures contract to gamble on nothing.”

Featured image by Bloomberg, Chart from TradingView.com