Peter Schiff Still Does Not Understand Bitcoin Proving He Is The Real Bear Whale
Proving once again what a slow learner he is, Peter Schiff goes on record discussing Bitcoins and make points that are not only illogical, but stupid. Schiff is known for being a gold bug, or promoter of precious metals. However, his results have been lackluster recently as gold remains below $1,300 an ounce.
BitcoinPriceLive would like to suggest the Bear Whale name for him, as Schiff is a perma-bear on Bitcoin, and whale on investing as his predictions have been consistently wrong about gold and silver prices. From now on, he should be called Schiff, The Bear Whale, as he predicts the price of Bitcoin could go as low as $1 a Bitcoin.
The Bear Whale, Peter Schiff
On his radio show yesterday, the Bear Whale Schiff says,
Also, we had a dumb comment related to Bitcoin. And I talked about the big drop in the price of Bitcoin last week, and it had a pretty nice bounce this week. Bitcoins got back up, I think all the way back up to 370 or 380 and I think as I am recording it now they are back down to 350s.
I mean the trend is obviously down right now; there is a lot of overhead resistance in the Bitcoin market. You know you had this guy, that had this order on, over the weekend, last weekend, on Bitsamp. He had this order to sell 30,000 Bitcoins at 300 and they’ve been calling this guy the Bear Whale. And I know it is kind of like seen as a victory, I know a lot of people in the Bitcoin community went in and bought these Bitcoins were for sale at 300 dollars, and ultimately they filled him.
Maybe he canceled part of the order, or he got rid of most of those Bitcoins and I think people symbolically think that it was some kind of low. They banned together, they took this guy [the Bitcoin Bear Whale] out and the market has gone back up. I don’t think so, I think we are going back down there. And I do not know if the same seller has more behind it, and I mean I doubt that he cleaned himself out. I do not think those were his last 30,000 Bitcoins… I think whoever sold them probably has more.
And I do not think we have seen the last of that Bear Whale and maybe there is more coming. The next time people might be so quick to take those offers. They had Marc Andreesen, and I think he is the guy who bought all those Bitcoins off the government and I do not know what price he paid. I think I know at the time of the auction, Bitcoins were probably around 600, maybe 700 dollars a coin. Now I do not know what the winning auction was, so I do not know what he paid.
I am sure it was a lot higher than the current price, and so he is talking about Bitcoin and he has got these other Bitcoin investments, and so he is asked you know about the price going down. You know, are you bothered by that, is that a problem, and he basically says it is irrelevant, it is immaterial.
Now the Peter Schiff [aka Bear Whale] shows cut to a clip by Tim Draper, rather than Marc Andreesen. Of course, it was Tim Draper who bought the federal Bitcoins, and not Marc Andreesen. However, Schiff consistently does poor research himself so he is bound to get the facts wrong. Tim Draper is now quoted as saying:
The price is going to go all over the place, like there is not a price… we are not really focused on the price but more on the technology that is getting build and the infrastructure that is getting built. I mean Bitcoin is a global payment network.
Next Peter Schiff the Bear Whale is totally baffled as he says:
Is this guy for real? [Whether Schiff means Draper or Andreeseen remains unclear]. Does he really believe this? I mean it is only a payment network if people want the Bitcoin. And what attracted so many people to Bitcoin was the price increase. It was the fact that they went from practically zero to a $1,000 a Bitcoin.
What made Bitcoin so valuable as a payment system, was: A the wealth so many people had tied up in Bitcoin and because now you had all these potential customers who had all this money in Bitcoin… all this supposed purchasing power, and it was the fact that more people were going to want to adopt Bitcoin cause they were going to want to get rich too.
But A, when Bitcoin goes down from a thousand to three hundred, A, Bitcoin purchasing power goes down so the Bitcoin owners are not as attracted anymore to potential merchants because they do not have as much buying power… because their Bitcoins are not worth as much. But it also makes Bitcoins less attractive to a potential new adopter. Because now instead of visions of wealth, as he thinks that Bitcoins are just going to appreciate forever, all of the sudden he says wait a minute, why should I buy this Bitcoin?
It was at 1,000, now it is at 300, what if it goes to 30? I do not know that I want to buy, i do not know if I want to take all that risk. So the price going down, undermines the credibility or desirability of owning the Bitcoin in the first place. And if you do not want the Bitcoin, why do you need the payment network?
The payment network only has value to the extent that the Bitcoin has value. If Bitcoin does not have value what difference does it make if you pay with it, because you have nothing to spend, you have no purchasing power. So it seems, maybe he just genuinely believes this and maybe there are plenty of other Bitcoin enthusiasts that have got their head in the sand on this as well and they think that the price is immaterial.
The price is very, very important. The appeal, and the rewards, and remember if you adopted early you were promised a windfall. Get in now, before everybody else. You buy your Bitcoins at 1,000 because eventually they will be 10,000 or 100,000. You just get in early, alright.
Well, when your Bitcoins go down and they keep going down, and if he thinks Bitcoins can crack a 100, and it is not going to undermine the value, I mean I think a lot of these Bitcoin start-ups that are being funded are going to collapse. When the price of Bitcoin collapses, all these things implode.
The payment system does not have any value if nobody wants the Bitcoin. Bitcoin could go to $1 a coin, and all these investments are worthless.
Meanwhile look at the market cap of Bitcoin, right, when the market cap collapses there is not much purchasing power to transfer. So even if it is easy to do it, you cannot transfer much in the way of purchasing power because the Bitcoins themselves do not have much purchasing power. Price is very, very important. Yet, you have people that are just burying their heads in the sand and they do not want to admit…
Bear Whale Peter Schiff is under the impression that early adopters were guaranteed some future payout. The truth is that most early adopters realized they could lose all of their money but still bought Bitcoins anyways. Early adopters have been rewarded for the risk they took.
Schiff claims the Bitcoin price could go to $1. In that case, Tim Draper would have bought 18 million coins, except that it would be impossible since there are less than 14 million Bitcoins in circulation. Never-mind that Schiff got Draper confused with Marc Andressen. Draper has been a very successful venture capitalist for a long time, including early investments in Facebook. Does Schiff consider all of Draper’s investments to be lucky? Draper has far more wealth than Peter Schiff will ever get from peddling gold.
“More dumb comments”, and “more dumb comments” says Schiff as anybody disagreeing with him is classified as dumb.
Schiff’s underlying assumption is that people will soon no longer want Bitcoins. His evidence seems to be that he thinks Bitcoin is worthless and soon everybody will become as enlightened as he is.
Peter Schiff, YOU, are the Bitcoin Bear Whale.