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.
The cost to complete a #Bitcoin transaction is now $128 and it takes a half hour to process. This is another reason why Bitcoin can’t function as a digital currency. The cost to actually use Bitcoin as a currency is prohibitively high for almost all transactions. It's a failure.
— Peter Schiff (@PeterSchiff) April 22, 2024
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.