Peter Schiff, chief economist at Euro Pacific Capital, again criticized Bitcoin on Tuesday (28), saying that the world’s largest cryptocurrency is losing ground to altcoins.
The Bitcoin domain, which was 100%, obviously because it was the first digital currency created, is now around 38.2% according to data from CoinGecko. Despite this, the BTC has already seen lower numbers in 2018 leaving only 32% of the market.
Anyway, Bitcoin had a great year in 2021 as it created price highs, approaching $70,000 in November. Furthermore, there are other counterpoints to Schiff’s punctual observation.
Peter Schiff criticizes Bitcoin and compares currency with altcoins
Peter Schiff is known for hating Bitcoin and loving Gold, the latter an asset set aside during 2021 due to the popularization of the BTC, making people and companies trade metal for digital currency.
In his most recent attack, Schiff claims that Bitcoin is losing the advantage of being the first cryptocurrency, given the number of cryptocurrencies on the market today.
“With over 16,000 alternative cryptocurrencies to choose from, Bitcoin’s market dominance is now down 40% for the first time since June 2018. With an unlimited supply of easily created cryptocurrencies with virtually identical properties, Bitcoin is losing its competitive edge of having been the pioneer.”
With over 16,000 alternative cryptos to choose from Bitcoin’s market dominance is now below 40% for the first time since June of 2018. With an unlimited supply of easily created cryptos with virtually identical properties, #Bitcoin is losing its first-mover competitive advantage.
– Peter Schiff (@PeterSchiff) December 28, 2021
An interesting point of this observation by Schiff is that Bitcoin was the first cryptocurrency to be created. Being zero for a long time, with no trades, not even transactions, the birth of Bitcoin is like a flower on a rock.
Altcoins, on the other hand, took advantage of BTC headlines and left many developers rich with pre-mining and other fraudulent gimmicks, in addition to pseudo-decentralization. With this, it would be possible to separate Bitcoin from altcoins, a view that Shiff does not seem to agree with.
As reported by Livecoins, Bitcoin maintains an absolute market leadership, with its main ex-competitors being Litecoin (LTC), at 19th in market cap today, and Bitcoin Cash (BCH) at 25th. In other words, the BTC is more sovereign than ever.
Now looking at other projects closer to market cap, such as Ethereum (ETH) and Binance Coin (BNB), these cryptocurrencies serve entirely different purposes, as Peter Schiff’s own son Spencer explains in response to his father.
“Bitcoin doesn’t compete with these coins; it’s in a completely separate category. Many altcoiners even admit it.”
In other words, Ethereum, Binance, Solana, Cardano, Polkadot are focused on smart contracts, on becoming global supercomputers to run decentralized applications, storing NFTs, for example.
Bitcoin’s purpose is to become digital gold, a scarce currency that solves the problems, such as inflation, caused by state-controlled currencies. Furthermore, functioning as a currency over the internet, that is, they are very different fields.
Another important point is that although there are thousands of currencies, far more than the 16,000 cited by Schiff, their low volume and liquidity can inflate their market value to unreal numbers, as well as create an illusion of false competition. Therefore, for those who build this decentralized technology, it is useless to look that far.