Peter Schiff, a renowned Bitcoin (BTC/USD) critic, took to Twitter earlier to bash not only BTC but the broader crypto market as well. Schiff, who is also the CEO of Euro Pacific Capital and the chairman of SchiffGold, noted that the crypto sector might result in an escalation of consumer prices. Explaining his reasoning, he said the crypto craze is absorbing funds that would otherwise enter into industries that produce real consumer goods. Schiff’s tweet read,
The #crypto craze adds to the upward pressure #inflation puts on consumer prices. Capital that goes into funding crypto related enterprises and NFTs isn't available to fund capital investment in industries that actually produce real consumer goods. Less stuff means higher prices.
— Peter Schiff (@PeterSchiff) September 22, 2021
However, the crypto community, as always, did not agree with the stockbroker’s sentiments. For instance, an enthusiast going by @JimLying pointed out that money only circulates but does not disappear. He gave an example of someone that cashes out their crypto to invest the funds in other unrelated industries. Jim concluded by saying Schiff does not understand inflation.
Crypto market overcomes bearish trend
Schiff tweeted earlier this week that the altcoin market will continue surging until it collapses. He pointed out that there are more than 12,000 cryptos, and more than 84 have market caps that exceed $1 billion (£0.73 billion). Despite this vast growth, the SchiffGold Chairman believes that the altcoin bubble is inching closer to bursting. According to him, supply will soon exceed demand, triggering an almost overnight implosion.
While Schiff expects a bubble burst, Mike McGlone, the Leading Commodity Expert at Bloomberg, predicts that BTC might surge to $100,000 (£72,915.50) before the end of 2021. According to him, BTC is building a base around the $40,000 (£29,166.20) level, like it did at the $10,000 (£7,291.55) level. With the supply decreasing and the demand rising, McGlone suggests a rally is in order.
Is $40,000 Bitcoin the New $10,000? Demand vs. Supply, Macro – The biggest risk to #Bitcoin is likely a risk-off swoon comparable to 1Q20. The crypto appears to be building a base around $40,000, akin to $10,000 last year. With supply decreasing, adoption increasing…. pic.twitter.com/n4hjeqpuNr
— Mike McGlone (@mikemcglone11) September 22, 2021
Meanwhile, the crypto market is recovering from a bearish trend that saw BTC plunge from a weekly high of $48,791.78 (£35,576.77) to hit $39,787.61 (£29,011.33). At the time of writing, the leading cryptocurrency by capitalization is changing hands at $43,543.11 (£31,749.68) after gaining 3.82% in 24 hours.
The altcoin market is also green today, with Solana (SOL/USD) being the biggest gainer in the top-10 list of leading cryptos. The coin is currently trading at $144.08 (£105.06) after rising 12.41% over the past 24 hours. The rest of the top-10 altcoins have gains ranging from 3.45% to 8.44%.
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