Euro Pacific Capital chief economist and strategist Peter Schiff suggested cryptocurrency investors are â€œfoolsâ€� Monday afterÂ bitcoinÂ took a major dip in the marketÂ after reaching record-breaking highs against the dollar.
â€œAll bitcoin is is the latest iteration of foolâ€™s gold and anybody buying it is ultimately a fool,â€� Schiff told FOX Business’ “Making Money with Charles Payne.”
Schiff explained that bitcoin investors who were able to sell after the stockâ€™s recent joyrideÂ are merely selling to other buyers who donâ€™t recognize itâ€™s all a â€œscheme.â€� However, he added,Â most people who donâ€™t sell are â€œunder the delusionâ€� that bitcoin will someday turn to cash.
â€œItâ€™s never going to be money,â€� he said. â€œIt doesnâ€™t fit the very definition of money. Money needs to be a commodity. It needs to have actual value unto itself, not just the uses and means of exchange.â€�
The economist likened bitcoin to fiat digital currency thatâ€™s â€œbacked by nothingâ€� and, moreover,Â is not legally recognized.
â€œPeople who are buying it are going to wake up one day and theyâ€™re just going to be a bagholder,â€� he concluded.
The cryptocurrency reached a record value of $40,797 perÂ coin on Thursday,Â helping fuel the market capitalization for all digital coins to above $1 trillion for the first time. Bitcoin was trading down 5.14% at $33,519 per coin on Monday afternoon after reaching a session low of $30,568.
FOX Businessâ€™ Jonathan Garber contributed to this report.
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