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Bitcoin-Basher warns: The next recession will be worse than anything before

Bitcoin-Basher warns: The next recession will be worse than anything before

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Peter Schiff is rather pessimistic about the global economy. The gold fan and Bitcoin newbie says: The Federal Reserve, which injects capital into the U.S. economy, will trigger a crisis that the Great Recession looks harmless by comparison.

Although Schiff is not impressed by Bitcoin and the “digital gold” argument, it often sounds just like proponents of the cryptocurrency. 

The “Euro Pacific Capital” CEO, for example, says: The Federal Reserve, which has invested billions in the economy in the past few months, will drive down the value of the dollar and make hard forms of money such as gold more attractive to investors.

Gold and the weakening dollar

Schiff says he sees no difference between the cash injection and the controversial quantitative easing policy. The US Federal Reserve would also likely continue to create money to save the banks “pretty much indefinitely”.

For Schiff, politics will weaken the dollar and encourage people to look for alternative investments. Perhaps the most ardent proponent of gold believes that the shiny precious metal will benefit:

“I think the price of gold will go up next year, so I want to own it, but I don’t know how much it will go up, but I believe that once we get started, gold will go from 1,500 to 2,000 very quickly Dollar can go up. “

Ship and Bitcoin – a love-hate relationship?

Bitcoin, on the other hand, will see a further drop in prices from its high of almost $ 20,000, Schiff said. He doesn’t think the institutional money is coming, which many of the noisiest bitcoin supporters often claim will drive the next bull run. Because:

“The original purpose of Bitcoin was to be an alternative to dollars or euros. It should be money … you tried to reinvent it as a store of value, but there is no value in Bitcoin. You can’t save what you don’t have. “

Interestingly, Bitcoin was developed and released at the end of the global economic downturn from 2007 to 2009. The Genesis block (the first Bitcoin block ever mined) even took a hint of the banking crisis as a message:

“The Times 03 / Jan / 2009 Chancellor shortly before the second bailout for banks”

Obviously, the type of economic crisis that Schiff believes is being provoked by the Federal Reserve had an impact on Satoshi Nakamoto when he designed the planet’s first viable cryptocurrency. 

Schiff doesn’t think Bitcoin is an improved version of gold – but there are many who do. If this number continues to grow, the Fed’s attack on savings should encourage people to look for better alternatives to the dollar.

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