Bitcoin supply is meaningless, Peter Schiff says: This is what counts
Gold advocate Peter Schiff has dismissed Bitcoin’s 21 million supply cap as an arbitrary construct, arguing that the cryptocurrency’s perceived scarcity is an illusion.
The longtime Bitcoin ( BTC ) critic suggested that changing the denomination from 21 million coins to 21 billion wouldn’t affect the underlying economics.
“What if Bitcoin’s supply was 21B instead of 21M? Redefining each BTC as 100K satoshis (not 100M) keeps the satoshi supply the same. Would it still feel scarce?” Schiff posted on X . The supply of Bitcoin is “actually meaningless,” he says, adding: “It’s the satoshi supply that counts.”
Scarcity perception versus reality debate
Bitcoin’s scarcity stems from perception rather than fundamental limitations, Schiff says. The 100 million satoshi subdivision per Bitcoin creates an arbitrary psychological framework that influences investor behavior.
The economist suggested that redenominating Bitcoin to show 21 billion total units instead of 21 million would expose the artificial nature of the scarcity narrative. His argument targets the mathematical basis for Bitcoin’s store-of-value proposition.
When confronted about Bitcoin’s recent price performance relative to gold, Schiff dismissed the comparison by noting that “gold has taken a temporary pause. Meanwhile silver is beating Bitcoin. I own silver too.”
Bitcoin is classified as a risk asset
Schiff categorized Bitcoin as a risk asset that rallies alongside technology stocks rather than functioning as a safe haven. He pointed to NVIDIA hitting record highs and the QQQ ETF trading near all-time highs as evidence of Bitcoin’s correlation with speculative investments.
“CNBC is once again touting Bitcoin’s recent outperformance of gold. But Bitcoin is a risk asset — it rallied with tech stocks,” Schiff wrote. He argued that gold’s sideways trading shows its safe-haven status during risk-on market conditions.
The economist highlighted silver’s approach to $38 per ounce, reaching the highest level since March 2012. He also noted that precious metals mining stocks remain subdued because “investors are being distracted by Bitcoin.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
1.7 Trillion Unlock V.S 1.7 Trillion Buyback: Goldman Sachs Bets on the Latter to Sustain the US Stock Market Bull Run
Goldman Sachs expects US companies to raise $600 billion in 2027, sets S&P target at 8,700 points, and states that buybacks and profits can withstand supply shocks.
Next target 8%? US mortgage rates soar to a three-year high as “higher for longer” trades sweep the real estate market
U.S. mortgage rates are experiencing a sharp upward surge. In just over a month, the average 30-year fixed mortgage rate has climbed by a full percentage point, reaching above 7.5%, the highest level in three years. As a result, homebuyer demand has plummeted, and existing home sales in September are expected to show a significant decline.
Bank of America Hartnett: Interest rate hikes become the biggest bullish factor, the logic of ending the bond bubble is spreading
Bank of America strategist Hartnett has made a counterintuitive assessment: the most favorable event for the stock market before the end of the year would be for the Federal Reserve to proactively raise interest rates in October—using a tightening move to curb the out-of-control long end. If the Fed proves its willingness to control inflation and term premium through an October rate hike, the market may actually stop worrying about the 10-year yield surging toward 6%, thereby easing pressure on stocks. Currently, while US stocks have not yet been brought down by interest rates, cracks are quietly spreading in South Korean brokers, French government bonds, and CCC-rated credit bonds.
Goldman Sachs chart: "Gasoline prices determine the US midterm election"! Prediction market shows "Democrats have a 65% chance of sweeping both chambers"
A recent report from Goldman Sachs shows that the Iran war caused oil prices to surge from $3 to $5 per gallon, while the Democratic Party's lead in the general ballot simultaneously expanded from 5 to 9 percentage points—two trends that closely align. Goldman Sachs believes that Hurricane Isaias, once again impacting 63% of offshore capacity in the Gulf of Mexico, has made oil prices a true "ballot decider." Bank of America warns that if the Senate sweeps both chambers, it will trigger significant risk aversion, potentially causing the stock market to plunge by over 10% and weakening the US dollar.
Crypto prices
More
