Peter Schiff calls Bitcoin ‘nothing’ following a statement by Mike Novogratz.

Schiff likens Bitcoin’s popularity to a ‘cult’ in a controversial tweet.

Dan Victor defends Bitcoin’s role as digital gold in the Twitter exchange.

In a recent post on X, Peter Schiff, a renowned crypto critic and economist, made a provocative statement regarding Bitcoin, asserting that it is not a resource and essentially amounts to nothing. Schiff made the remark following a statement from Mike Novogratz, CEO of Galaxy Digital and an early investor in Bitcoin.

Specifically, the crypto critic mentioned that Novogratz has expressed a view he agrees with about Bitcoin. According to Schiff, Novogratz stated that Bitcoin is not something people inherently need but rather something that is sold to them through persuasion.

Schiff added, “No one needs Bitcoin. So, people only buy it after someone else talks them into doing so. Then once they buy, they immediately try to convince others to buy too.” Therefore, the crypto critic likened Bitcoin’s popularity to that of a cult.

Finally @novogratz got something right about #Bitcoin. He admitted that it's not bought, but sold. No one needs Bitcoin. So people only buy it after someone else talks them into doing so. Then once they buy, they immediately try to convince others to buy too. It's like a cult. — Peter Schiff (@PeterSchiff) October 18, 2023

However, crypto market participants challenged Schiff’s sentiment about Bitcoin. Dan Victor, an investor and published author, argued a different perspective about Bitcoin’s utility. He highlighted Bitcoin’s place as digital gold, noting that its finite supply and the influx of unlimited fiat currency would drive its price higher over time.

Moreover, Victor cited that Bitcoin has achieved recognition as an alternative investment and can coexist alongside traditional precious metals. However, the crypto critic did not find Victor’s response appealing. Schiff asserted that Bitcoin is nothing more than a non-resource.

He further pointed out the existence of a substantial number of Satoshis, the smallest unit of Bitcoin, to dismiss the Bitcoin scarcity claim Victor hinted at. In particular, Schiff stated that with 2.1 quadrillion sats, “there’s an abundance of ‘nothing’ to go around.”