Peter Schiff: “Bitcoin Transactions Are Too Slow and Expensive”

The renowned economist, investor, and advocate for gold investments has voiced his concerns about the slow speed and high transaction costs of the Bitcoin network, calling it an impractical option. Peter Schiff took to Twitter to highlight the current need for users to pay around $128 to complete a Bitcoin transaction, which can take up to an hour to process.

Schiff’s tweet stated that the high cost and lengthy processing time are clear indications that Bitcoin cannot function effectively as a digital currency. He believes that the prohibitive costs associated with using Bitcoin for everyday transactions make it a failure in this respect.

As a proponent of investing in gold, Schiff suggested tokenizing this precious metal. He argues that using gold for payments would be nearly instant and cost-effective, highlighting that gold performs much better on the blockchain than Bitcoin itself. In the aftermath of the Bitcoin halving on April 20, Schiff also predicted a decrease in the net worth of crypto investors.

BitMEX Research, in response to Schiff’s tweet, argued that high transaction costs actually demonstrate the success and popularity of the Bitcoin network. They compared Bitcoin to a crowded restaurant, where increasing fees serve as a testament to its widespread usage.

Recently, Peter Schiff further stated that Bitcoin’s growth is solely driven by the “Greater Fool Theory.” He also predicted that the introduction of spot BTC-ETFs in the United States would ultimately lead to a collapse in digital gold.