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Bitcoin hater Peter Schiff: This banking crisis is getting worse than 2008

Bitcoin hater Peter Schiff: This banking crisis is getting worse than 2008

gold bug and bitcoin (BTC) hater Peter Schiff believes that the current banking crisis could be much more serious than the one in 2008. According to Schiff, the banks are in a much worse shape at the moment than in 2008, and he is referring in particular to the banks that “too big to fail.” The banks that had to be bailed out at the time to prevent further misery have only gotten bigger since then.

Problem passed on

If we understand Schiff’s words correctly, he seems to be saying that the Federal Reserve has merely postponed the problems of 2008 to a later date. By saving the benches at that time, the dirt was pushed under the carpet, but it was given the opportunity to rot further and we now have a much bigger problem.

It is now clear that the US banking system has a hard time swallowing the Federal Reserve’s interest rate hikes in recent months. So far, that problem has manifested itself in the collapse of Silicon Valley Bank and Signature Bank, but according to Schiff, that’s just the beginning.

The banks – or at least the customers of the banks – are all bailed out by governments right now. But we are going to foot the bill in the form of inflation, according to Schiff, which is the inevitable consequence of central bank intervention. Schiff’s solution to this problem is predictable: gold.

Gold as a solution

Peter Schiff has been preaching for years for a return to the gold standard and invests heavily in the shiny precious metal himself. He is so convinced of the future of gold that he does not see alternatives such as bitcoin. According to Schiff, bitcoin is not scarce at all, because it is super easy to copy the code and start all kinds of alternatives.

Gold, on the other hand, cannot be copied and there is really only one of them. We can argue against that argument that the code of bitcoin is indeed easy to copy, but that you cannot take the entire network with you. Just like you could theoretically copy Facebook’s code to build the same social network, but that doesn’t mean you’re copying the value of the entire company.

In that respect, Schiff’s argument against bitcoin is not very strong. After all, despite all the copies, bitcoin is still at the top of the market and there is no alternative that even comes close to the dominance of bitcoin in terms of market capitalization.

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