Gold devotee Peter Schiff conveys a Christmas message to all Bitcoin investors, so that they sell their BTC assets as soon as possible. Even though many disagree, according to him, this recommendation will be a smart move in the future.
“My Christmas gift to HODLers is this bitcoin chart. As you can see, bitcoin is much closer to the ceiling than the floor. The yellow line that used to be support is now resistance. Since the upside potential is so low and the downside risk is so high, the smart move is to sell today,” Schiff wrote in a Twitter post on Sunday.
News Bitcoin quotes Schiff's warning, telling investors to sell their Bitcoin when it reaches the bottom.
Schiff is the founder and chairman of Schiff Gold, a precious metals dealer specializing in gold and silver bullion. He has long been a skeptic of bitcoin, regularly hitting crypto while promoting gold.
While some people thanked Schiff for his advice, many criticized economists for telling people to sell at the bottom and causing panic selling.
“Just one piece of advice for you: write these things down when bitcoin is at its peak (e.g. around US$200K next time) and you might be able to help someone. Doing this near the bottom doesn't help,” read one response to Schiff's tweet.
Some people take Schiff's warning as a sign that the bottom is in. A number of people have said that they recently bought more coins as the price of BTC soared after Schiff said he would sell them in the past.
Many people disagree with Schiff's BTC price analysis, telling the gold bug to zoom out on the bitcoin chart to see buy signals.
Some people remind Schiff that bitcoin far outperforms gold in the long term.
“My Christmas gift to Peter Schiff is this gold chart that compares bitcoin's performance during the highest inflation period in a generation,” read one comment on Schiff's post.
Additionally, many bitcoin investors accuse Schiff of not understanding cryptocurrencies. However, the economist defended his knowledge of BTC in a tweet last week.
“The HODL bitcoin gang accuses me of not understanding bitcoin. They think that if I take the time to learn about the underlying technology, I'll take it,” said Schiff.
Schiff claims that he understands bitcoin much better than the people who own it.
Schiff regularly warns about bitcoin. Last week, he warned that BTC may not rise while other financial assets recover.
In November, Schiff predicted that bitcoin would fall further, valuing BTC at US$10K. He also believes that the US dollar will fall and the actions of the Federal Reserve will cause a full-blown financial crisis.
