Peter schiff reply to this tweet:
Because #Bitcoin whales succeeded in pumping Bitcoin close to $70K, it's much easier for them to unload more worthless Bitcoin at $20K, as those suckers who are buying think they're getting a bargain. These "bargain" hunters averaging down will eventually be known as bag holders.Quite interesting
Schiff is evidently unaware that some people actually use Bitcoin as money. He would be entirely correct, if there were no purpose to Bitcoin other than buying it and waiting for “number go up”.
(inb4 Jay strawmans me as making a “bigblocker” argument for pointing out that Bitcoin is not a Ponzi...)
There are people with businesses that are dependent on Bitcoin, for purposes other than Bitcoin trading. There are individuals who use Bitcoin just because it’s better money. At some point, even if
every regular of the Speculation forum were to mindrust, falling prices would slam into the wall of demand from people who need BTC to use BTC. I do not only mean medium of exchange: This also includes people who use Bitcoin as a store of value due to its non-speculative qualities as a store of value.
My perspective: I used Bitcoin for years, and used this forum for years, before I ever even set foot in Speculation, let alone the Wall Observer. Bitcoin made me care about its purchase power (“price” as a proxy for purchase power), after I was already in some degree economically dependent on it. Even today, I am
bored by the market unless either (a) I am seeking to buy more BTC, or (b) I am desperate to buy more BTC because I just lost my BTC, or (c) on the flipside, I need to spend some money. Most of my WO posts are entirely off-topic.
How many are like me, in that aspect?
There is your absolute worst-case Bitcoin bottom:
Organic demand.As I have said before, this is why I urged for years that slower growth was desirable. It makes the market more stable—more robust. It also makes the absolute worst-case bottom higher: The notional price that will be reached if
every speculative investor mindrusts out.
Useless coins have no bottom. They can go to zero or negligible value, because nobody wants them for any purpose other than to sell for a higher price to the greater fool.
Because Bitcoin
is Bitcoin,
i.e. a scarce thing used as standard money, it is like
gold. Is Schiff worried about the bagholders for gold?
Poll
