Bitcoin Could Become Less Useful and See Huge Price Drop: Expert Warns

Bitcoin Could Become Less Useful and See Huge Price Drop: Expert Warns

Investment Bitcoin

By Miles

17 Jan 2024 (4 months ago)

2 min read

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Economist Peter Schiff predicts tougher SEC rules could raise Bitcoin costs, questioning its value and use compared to gold.

Economist Peter Schiff has warned that new rules from the SEC, led by Gary Gensler, might make Bitcoin transactions more expensive. He believes this will make Bitcoin less useful and lower its price. Schiff thinks Gensler will soon bring in tough crypto regulations, affecting Bitcoin's cost and use.

Schiff's main worry is about the SEC possibly introducing strict new rules for cryptocurrencies. He thinks this will raise Bitcoin transaction costs, reducing its value and price. He bases his prediction on Gensler's actions, like his reluctant approval of Bitcoin ETFs, which Schiff sees as a sign of coming stricter rules.

On social media, some have noted that Gensler previously called Bitcoin a commodity, which might make heavy SEC control hard. But Schiff argues new rules could focus on preventing money laundering, not just on securities law.

Schiff often doubts Bitcoin's real value and usefulness. He highlights the complex and costly process of buying Bitcoin, further arguing that the need for third-party custodians goes against Bitcoin’s goal of cutting out middlemen. He also questions Bitcoin as a currency and as an investment, similar to investor Mohamed El-Erian. Schiff thinks money going into Bitcoin ETFs will not be fresh inflows but just a shift of inflow from other Bitcoin investments, this will not help its value. He compares Bitcoin's value and use to traditional assets like gold, showing skepticism.

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