Peter Schiff Criticizes Bitcoin Scarcity Model Amid All-Time High

Peter Schiff, CEO of Euro Pacific Capital, has once again criticized Bitcoin's scarcity model, reigniting debates within the crypto community. On July 11, 2025, Schiff argued that Bitcoin's supply model, capped at 21 million coins, is arbitrary and does not necessarily equate to its value. This critique comes at a time when Bitcoin reached an all-time high of $118,856, highlighting the ongoing discussion about the cryptocurrency's fundamentals and scarcity.

Schiff's remarks challenge the core principle of Bitcoin's scarcity, which is often cited as one of its key economic advantages. He suggests that the perceived scarcity of Bitcoin is more psychological than real, and that other factors such as utility and adoption play a more significant role in determining its worth. This perspective adds to the growing debate over Bitcoin's value proposition, with proponents highlighting its scarcity as a key feature that sets it apart from traditional fiat currencies.

Schiff's history of advocating for metals over crypto adds weight to these discussions. He has previously suggested that investors should consider selling Bitcoin and buying silver, anticipating a significant increase in the value of the latter. His recent comments coincide with Bitcoin's all-time high, further fueling the debate about the cryptocurrency's economic fundamentals.

While Schiff's remarks have sparked discussions on platforms like X and Reddit, the market volatility was not notably affected. Bitcoin maintained strong performance, and key figures like Arthur Hayes suggested a bullish phase for altcoins. The renewed scrutiny of Bitcoin’s principles could potentially influence future regulatory or technological discussions, but major institutional or governmental reactions remain absent, with the emphasis continuing on crypto’s perceived value.

Schiff's criticism underscores the need for a more nuanced understanding of the factors that drive the value of digital assets, beyond just their scarcity. The debate over Bitcoin's value proposition continues to rage, with proponents and skeptics alike weighing in on the cryptocurrency's long-term viability as a store of value. As the discussion evolves, it remains to be seen how these debates will shape the future of Bitcoin and the broader crypto market.