Renowned economist and outspoken cryptocurrency critic, Peter Schiff, is urging his followers to divest from digital currencies, warning that the industry is on the brink of more bankruptcies in the near future.
Schiff cites the recent bankruptcy of Silvergate Bank, which serviced numerous cryptocurrency companies, as evidence of the looming crisis.
Against this backdrop, coupled with economic indicators in the US, major cryptocurrencies have seen significant drops in value in recent weeks.
“If digital currencies are truly the future, why has Silvergate Bank, the big cryptocurrency bank, already gone bankrupt? The industry is heading towards a wave of bankruptcies of blockchain-related companies, and this will turn the crypto winter into an icy abyss for all digital assets. It’s time to sell your bitcoins and invest in gold!”
Schiff wrote. Interestingly, Schiff’s son, Spencer, disagrees with his father’s assessment, arguing that while cryptocurrency and blockchain companies may go bankrupt, bitcoin will not go down with them, but rather emerge as a lifeboat for the entire industry.
It is noteworthy that in the past day, the value of the flagship cryptocurrency has increased by 2.5%, with BTC currently trading at $20,400. In December of last year, Schiff had predicted that bitcoin could fall to $5,000.