Notorious economist Peter Schiff, known for his long-time denial of Bitcoin, predicted that the next four years will be “much worse” for major cryptocurrencies. Schiff admitted that he believes the “Bitcoin is digital gold” hypothesis has officially failed.
Despite being historically high (compared to 2020 or 2023), Bitcoin at $87,000 is losing purchasing power compared to gold, Schiff argues.
He said the Bitcoin gold price is down 46% from its November 2021 high.
Schiff has been predicting the death of Bitcoin since it was $300. He has been wrong for 15 years, so his current analysis should be ignored.
But the money bug always employs the “Great Fool Theory” argument. He acknowledges that early buyers got rich, but argues that it’s only because “later buyers turned millions of dollars into pennies.” He sees Bitcoin as a pyramid scheme in which early entrants steal wealth from late entrants.
He claims his obsession is altruistic, claiming he frequently posts about Bitcoin to “prevent people from losing money.”
legitimate overconfidence
Peter Schiff’s overconfidence is now backed up by hard market data and technology trends in late 2025.
Schiff has long argued that Bitcoin is not a “safe haven” asset (like gold) but a “risk asset” (like tech stocks). In December 2025, the market is proving him right.
2025 has become the year of “flight to safety.” In this environment, capital moves away from Bitcoin and into gold and silver, and away from Bitcoin.
While traditional hard assets are winning, “digital” assets are lagging behind. He believes this is the ultimate stress test, and Bitcoin is failing it.
broombeg warning
Schiff’s warning echoes one recently issued by Bloomberg’s Mike McGlone. The latter has recently claimed that Bitcoin has become “dead money,” meaning it is an extremely risky investment that no longer produces returns.
In the financial industry, an asset with zero additional return over a total of five years is considered a failed trade, even though it is three times more risky than a tech stock. Capital flows where it is best served, and tech stocks now offer higher returns with less risk.
If Wall Street’s massive hype on ETFs fails to push Bitcoin to new sustainable highs relative to inflation and stock prices, there is no “bullish story” left to drive prices higher. We’re out of ammunition.
