- Peter Schiff reignites criticism, claiming Bitcoin lacks inflation-hedge credibility and stability.
- Kevin O’Leary and Senator Lummis defended Bitcoin’s growing market and policy relevance.
In a move that surprised no one, longtime Bitcoin [BTC] critic Peter Schiff has once again taken to social media to challenge the king coin’s legitimacy.
Schiff’s critiques of Bitcoin
In his latest post, Schiff cast doubt on Bitcoin’s role as an inflation hedge, arguing that its recent price behavior undermines that narrative.
Known for his unwavering support for gold, Schiff compared Bitcoin’s performance to that of tech stocks, claiming it lacks the stability and characteristics of a true store of value.
Taking to X, Schiff noted,
“It should be clear from recent price action that claims that Bitcoin has decoupled from the NASDAQ and now trades more like gold are false. If you’re worried about inflation and want to protect your purchasing power buy gold. If you want to bet on the NASDAQ just buy tech stocks.”
Why does Schiff believe more in gold than Bitcoin?
He argued that the asset’s recent price movements are driven more by speculative trading and shifting macroeconomic conditions than by any fundamental monetary strength.
Schiff went a step further to caution that Bitcoin may fail to offer the long-term wealth protection typically associated with traditional safe-haven assets like gold.
However, his criticisms met swift pushback from the crypto community.
The community stands against Schiff’s argument
Billionaire investor Kevin O’Leary, in a recent interview with a publication, directly challenged Schiff’s assertions, highlighting a growing divergence in views between traditional financial stalwarts and digital asset proponents.
He said,
“#BITCOIN IS THE ONLY CRYPTO THAT BILLIONS OF PEOPLE WILL BUY.”
Adding to the momentum around Bitcoin’s policy relevance, Senator Cynthia Lummis has weighed in with a bold proposal linking Bitcoin to national fiscal reform.
She voiced her support for the BITCOIN Act, suggesting it could serve as a strategic tool to address the United States’ staggering $36 trillion debt.
Lummis emphasized that with the current administration showing openness toward digital assets, now is the time to consider such alternatives seriously.
Though details on the Act remain limited, her endorsement signals a significant shift.
Bitcoin’s price action
In the meantime, Bitcoin’s recent price action added another layer to the ongoing debate.
Despite a slight 0.64% dip, BTC was trading at $96,201.18, maintaining a strong position after kicking off May with a bullish close at $97,406.
This upward move marks a significant breakout above a key resistance level, one that Bitcoin had struggled to hold since late February.
Therefore, as Bitcoin continues to assert its position, both in price and policy relevance, its long-term role in the financial ecosystem remains increasingly difficult to ignore.
