Is Bitcoin A Gigantic Pump and Dump Bubble That’s Bound To Pop?

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Coinbase Holds Over $7 Billion Worth Of Bitcoin In Its Cold Wallet - Huge Centralisation Risk_
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The argument about Bitcoin and whether or not it has any real value that should be trusted has been raging for a long time and will likely continue raging. Recently, American TV personality John Stossel has tweeted support for Bitcoin and expressed distrust for the government. In the tweet, however, is a TV piece showing him in conversation with tech reporter Naomi Brockwell and popular anti-Bitcoin economist Peter Schiff.

Beginning with the government’s dislike for Libra, Brockwell says that governments are opposed because they are threatened by it because it will eventually become “competition for the U.S. Dollar.” The reporter suggests that the government could probably do a lot to stifle Libra’s growth, but their power stops there and does not extend to Bitcoin. Brockwell says

“There is no server to unplug, there is no company to shut down and no CEO to throw in jail, so it persists…It is the only suitable money for free people.”

While both Stossel and Brockwell made several points in support of Bitcoin and why the government is not very excited by the offering, Schiff in his usual manner, shot Bitcoin down. Unsurprisingly, in an interesting back-and-forth with Stossel, Schiff suggests that Bitcoin isn’t that great.

“I think [Bitcoin is] more of a gigantic, classic, pump and dump scheme [and] there’s nothing to give Bitcoin value…I just don’t think it’s going to work.”

Schiff suggests that the idea that no one can interfere with Bitcoin is false because governments can easily tackle it in the “normal market” with regulations, and also prevent financial institutions from engaging in any related activity.

Being the popular gold-bug he is known to be, Schiff says there’s better value in gold

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“Gold has worked for thousands of years, Bitcoin has only been around for ten. Gold has actual value [and] there’s a huge industry that needs gold. [There’s] jewellery, then you have it in consumer electronics, in aerospace [and] in medicine.”

When Stossel confronted him with the fact that Bitcoin has ensured better returns than gold, Schiff suggests that it’s nothing special.

“Well, if you got in early, you could say that about a lot of bubbles, until they pop.”

Schiff recently had a twitter exchange with Morgan Creek Digital co-founder Anthony Pompliano, describing Bitcoin as a “Ponzi” that’s already “running out of new buyers”, making it the second time the two men have argued out Bitcoin’s relevance against each other.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.