Schiff Questions Bitcoin's Scarcity
Peter Schiff, a well-known Bitcoin critic, recently sparked a heated discussion on X (formerly Twitter) by questioning the arbitrary nature of Bitcoin's 21 million coin supply cap. His comments, made during Bitcoin's recent price surge to a new all-time high (ATH) of $118,000, focused on whether the cryptocurrency's perceived scarcity is truly based on its limited supply or primarily driven by public perception.
Schiff's Argument: Scarcity is Perception
In his X post, Schiff pondered whether Bitcoin would still feel scarce if its total supply was 21 billion instead of 21 million. He argued that the number of satoshis (the smallest unit of Bitcoin) would remain unchanged if the number of satoshis per Bitcoin were adjusted. He stated, "The supply of Bitcoin is actually meaningless—it’s the satoshi supply that counts." This suggests that the perceived scarcity is a psychological phenomenon rather than an inherent property of Bitcoin's design. He further added, "21 million creates an illusion of scarcity that would be lost if the number was 21 billion."
The post quickly garnered over 146,000 views, igniting a robust debate among X users. Schiff's assertion that "Bitcoin’s scarcity is about perception, not reality" triggered a wave of counterarguments emphasizing the significance of Bitcoin's fixed supply.
Counterarguments and Public Reaction
Many X users refuted Schiff's claims, offering counterpoints using mathematical analogies and real-world comparisons. One user aptly compared it to slicing a pizza into 8 or 16 slices—the total amount remains the same, regardless of how it is divided. Another stated that "If BTC had a 21 billion supply but each coin = 100K sats, nothing changes fundamentally." These comments highlighted that scarcity is defined by the fixed supply limit, not the arbitrary unit denomination.
Some users even suggested Schiff's comments were a calculated move to increase engagement, pointing to his growing following since adopting an "anti-Bitcoin" stance.
Schiff's Preference for Precious Metals
Schiff reiterated his preference for tangible assets like gold and silver, contrasting them with Bitcoin. He argued that unlike Bitcoin, gold and silver have practical applications and inherent value stemming from their real-world uses. He emphasized this by pointing out that while Bitcoin is seeing an increasing amount of adoption, gold and silver remain the more sustainable assets in his view.
He further criticized the increasing Bitcoin adoption by corporations, labeling it a risky trend driven by speculation rather than sound business models. He voiced concerns about the growing political support for Bitcoin, arguing it poses a risk to the US dollar and the broader economy.
Growing Institutional Bitcoin Adoption
Despite Schiff's criticisms, institutional and retail interest in Bitcoin continues to grow. Over 100 public companies now hold Bitcoin on their balance sheets, collectively owning over 852,000 BTC, according to BitcoinTreasuries. Major investment firms like BlackRock and Michael Saylor's MicroStrategy have accumulated over 1.3 million Bitcoins—representing approximately 6% of Bitcoin's total supply. Schiff consistently labels these strategies as speculative.
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