Peter Schiff Dismisses Bitcoin's Scarcity: 'The Supply of Bitcoin Is Actually Meaningless'
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Prominent economist and gold bug Peter Schiff has taken yet another swipe at Bitcoin, this time questioning the asset’s perceived scarcity.
“What if Bitcoin’s supply was 21B instead of 21M?” Schiff said on July 12 on X, suggesting that it could be the case if 1 BTC was redefined as 100,000 satoshis instead of 1 million satoshis.
“Would it still feel scarce?” he said, adding, “100M is just an arbitrary construct. The supply of Bitcoin is actually meaningless—it’s the satoshi supply that counts.”
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Schiff’s critique of Bitcoin’s supply attempts to highlight how the asset’s valuation is tied to the perception of its scarcity. But as highlighted by many Bitcoin proponents in response to Schiff, nothing fundamentally changes, no matter how you try to look at it.
One user likened the argument to saying one can have more pizza by cutting it into smaller slices. Ethereum Foundation acceleration team member Binji Pandeadded that the same argument could be made against gold’s scarcity by redefining ounces.
“What if you were a giant purple dinosaur instead of a man? Absurdity invites more absurdity,” value investor and Bitcoin proponent Mike Alfredsubmitted.
Schiff’s critique of Bitcoin’s scarcity followed an impressive week for the asset that saw it break high after high while gold stagnated. He attributed this outperformance to a surge in risk sentiment, dismissing any notion that it was proof of one asset being superior to the other.
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“CNBC is once again touting Bitcoin’s recent outperformance of gold,” he said. “But Bitcoin is a risk asset — it rallied with tech stocks. $NVDA hit a new record high today. The $QQQ is barely off its record high set Wednesday. In that environment, gold — a safe haven — has traded sideways.”
Schiff added that silver was also rallying and had better potential than Bitcoin in his view. He said, “while Bitcoin can easily crash, silver’s downside seems very limited.”
In April, Schiff said that the U.S. was on the cusp of a financial crisis worse than the Great Depression, citing President Donald Trump‘s tariffs. He said 2025 would be the end of Bitcoin if the predicted financial crisis materialized.
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