5 Reasons Peter Schiff Believes Bitcoin Is Destined to Hit Zero
-
Written by
Simonas Brazionis - Updated 2025-10-22 23:03:47
Peter Schiff is once again sounding the alarm on Bitcoin’s future, insisting the cryptocurrency is on a path to worthlessness. In a live Twitch discussion with Threadguy, the outspoken gold advocate repeated his long-held view: Bitcoin, he argues, “fails as money” and survives purely on belief. Without intrinsic value, cash flow, or tangible backing, Schiff claims Bitcoin’s price is sustained by sentiment alone — and when that confidence fades, the price could collapse rapidly.
Table of content
Gold Holds, Bitcoin Folds
Schiff rejects the “digital gold” comparison, saying Bitcoin consistently falters when markets turn fearful. During the June selloff, for example, gold and oil prices rose while Bitcoin sank — a pattern he says exposes BTC as a risky asset, not a safe haven. Real gold, Schiff notes, shines in crises; Bitcoin, in contrast, bleeds value.
ETFs Don’t Solve Bitcoin’s Liquidity Problem
According to Schiff, the rise of Bitcoin ETFs offers only an illusion of stability. He warns that institutional buying concentrates liquidity rather than diversifying it, making the market fragile when flows reverse. If large holders rush to exit, he argues, there won’t be enough real buyers to absorb the supply — creating a dangerous feedback loop.
Regulation Could Choke Crypto’s Future
Schiff also points to government regulation as a long-term threat. He predicts that authorities will keep tightening control over exchanges, custody rules, and taxation, effectively strangling Bitcoin’s real-world utility. Earlier this year, he went as far as calling Bitcoin “a decentralized Ponzi scheme sustained by politics.” When the next global credit crunch arrives, Schiff expects regulation to expose Bitcoin’s weaknesses rather than its supposed resilience.
Gold Keeps Winning the Credibility Test
For Schiff, performance tells the story. When gold rallies and Bitcoin trails behind, he sees proof that investors still prefer metal over math when safety matters. Each divergence, he says, chips away at Bitcoin’s legitimacy as a macro asset. As he put it recently, “The digital gold narrative is bleeding out in real time.”
Schiff’s bottom line remains unchanged: Bitcoin lacks intrinsic worth, suffers from fragile liquidity, faces mounting regulatory pressure, and continues to underperform against gold. In his view, Bitcoin’s fate depends entirely on the market’s faith — and faith, he warns, can evaporate overnight.
Blockchain Expert
