Peter Schiff is well-known for his bearish take on leading cryptocurrency Bitcoin (CRYPTO: BTC).
The economist and global strategist spoke about several topics, including Bitcoin and gold during a recent interview with Bitcoin bull Anthony Pompliano. Here are some of the highlights.
What Happened: Schiff told Pompliano that Bitcoin blew up and had one of its worse years in 2022, but the worst might still be ahead.
Schiff said Bitcoin had a bounce in 2023 due to a bear market rally and the potential that shorts are covering, creating some buying and some speculation in the market.
“The reason it had a big bounce in January is because it got destroyed in 2022,” Schiff said.
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Schiff added there could be some speculation in the potential for more bear market bounces.
“Bitcoin was $70,000 and it went to $16,000, maybe it’ll go to $25,000, $30,000, that’s a good return.”
Schiff noted many people would also see that as a good return.
Related Link: How To Buy Bitcoin
What’s Next: During the hour-plus interview with Pompliano, Schiff echoed his long belief that Bitcoin has no value and will eventually be worth $0.
“The ride to $0 is not going to be in a straight line,” Schiff said, causing Pompliano to smirk and let out a small laugh.
Schiff cautioned the losers from 2022 such as Bitcoin and cryptocurrency-related stocks could lose again in 2023.
“I think they’re all gonna make new lows, the FAANG stocks as well.”
Schiff said the lows for Bitcoin and high-growth stocks could come in the early part of 2023.
The year 2022 saw a shift from momentum into value, which Schiff said is why his company Euro Pacific Asset Management did so well.
Schiff said the two key strategies by Euro Pacific are dividend-paying stocks and value, and for the most part avoiding tech stocks.
“These strategies will thrive once again and they’ll do even better (in 2023),” he said, adding, “They blew up and I don’t think they’re finished blowing up.”
Schiff said the dollar is going to get killed in 2023, which could be one of its worst years ever, before also predicting that 2024 will be even worse.
Pompliano asked Schiff if the comments on the dollar weakening could be good for Bitcoin.
Schiff said there are too many wild cards when it comes to Bitcoin, including the biggest wild card in the Grayscale Bitcoin Trust (OTC:GBTC).
Schiff cautioned that a lot of companies could go bankrupt and have to sell assets.
“There’s so many potential bombs that could explode in the crypto space. I wouldn’t look at it as a safe haven, so much risks.”
Schiff also said most of the people who own Bitcoin are losing money, as they didn’t buy until 2021 or 2022 and they are down 50% or more.
“Imagine when Bitcoin goes below $10,000, a lot of people will sell.”
BTC Price Action: Bitcoin is trading at $23,966.23 at the time of writing versus a 52-week trading range of $15,599.05 to $48,086.84.
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