Crypto enthusiasts consider bitcoin an alternative to fiat currency. However, he is not doing what he was designed to do, as nothing can be bought with bitcoin or any other cryptocurrency, says Peter Schiff, a crypto skeptic.
Schiff was responding to a Twitter follower who commented that bitcoin was a way out of the current crisis and a chance to avoid using money.
"Paying with encryption is a marketing trick to make it easier for people to get rid of their bitcoin and buy gold," said Schiff. Euro Pacific Capital's CEO explained that it is first necessary to convert bitcoin into dollars and only then can something be purchased. "The lie is that you can buy things with bitcoin," said Schiff.
Encrypted payment is a marketing trick to make it easier for people to get rid of their #Bitcoin And buy #gold. They don't pay with Bitcoin. They sell their Bitcoin first and then pay using the dollars they received from the sale. The lie is that you can buy things with Bitcoin.
– Peter Schiff (@PeterSchiff) May 21, 2020
A renowned supporter of gold, Schiff said recently that "only fools are choosing bitcoin" over precious metal.
He frequently criticizes the cryptocurrency, announcing in January that he was unable to access his bitcoin reserves after his digital wallet stopped accepting his password. Noting that "it was not such a tragedy", the veteran broker said: "I knew that owning bitcoin was a bad idea, but I never realized it was so bad!"
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