Bitcoin (BTC) Critic Peter Schiff Questions Its “Safe-Haven Asset” Status After Elon Musk’s Tweets

Published May 17, 2021 | Updated May 17, 2021

In Brief
  • Schiff said that if a single tweet can rattle the Bitcoin market, it loses its legitimacy as a “safe-haven asset”.
  • He further added that Bitcoin has no real “store of value” while pointing out its massive volatility.

Bitcoin (BTC) Critic Peter Schiff Questions Its “Safe-Haven Asset” Status After Elon Musk’s Tweets

  • Schiff said that if a single tweet can rattle the Bitcoin market, it loses its legitimacy as a “safe-haven asset”.
  • He further added that Bitcoin has no real “store of value” while pointing out its massive volatility.

Bitcoin (BTC) has come under severe pressure and has tanked more than 10% after Elon Musk suggested that Tesla might dump its Bitcoin holdings going ahead. “Indeed,” Musk seems to be having a strong influence in the crypto space and it has reflected over the last few weeks and months.

At press time, BTC is trading 10.98% down at a price of $42,958 with a market cap of $815 billion. Over the last 24 hours, over $100 billion has been eroded from Bitcoin valuations.

This has given a golden opportunity to Bitcoin critics like Peter Schiff to further their Bitcoin (BTC) bashing claims. Schiff went on questioning Bitcoin’s status as legitimate money and a “safe-haven asset” if one single person can have so much influence in its price movement.

Schiff Prefers Gold Over Bitcoin

Schiff has always preferred yellow metal Gold over Bitcoin and has denounced every time that Bitcoin is a store-of-value. Writing further about it, Schiff said:

“Bitcoin (BTC) is clearly not a store of value as it has no real value to store. But since some people are willing to buy it anyway, it has a price, which gives it a market value. Bitcoin has lost 1/3 of its market value in the past month. How does that qualify it as a store of value?”

Over the last few weeks, Bitcoin has been breaking crucial support levels as whales have been depositing big quantities at exchanges. Adding to the investors’ woes, Elon Musk has played a bigger spoilsport recently. but some of the market analysts and industry veterans believe that Bitcoin will bounce back once the dust settles. In his recent tweet: Binance CEO Changpeng Zhao writes:

Since Bitcoin (BTC) and the overall crypto market has shown similar movements with the stock market, Chinese analyst Wu Blockchain writes:

“Elon Musk’s inconsistent remarks about Tesla’s bitcoin selling dropped Bitcoin to a minimum of 44260, but the Nasdaq index rose by 2.3%, and Bitcoin is expected to continue to rebound”.

Looking at the price volatility, it is difficult to suggest that the bottom formation is done or there could be further correction going ahead.

 

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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Bhushan Akolkar 541 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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