Bitcoin Surges 12.2% Outperforming Silver's 3.98% Gain

Peter Schiff, Chief Economist at Euro Pacific Capital, has asserted that Bitcoin’s 21 million supply cap is a “meaningless” metric. Schiff contends that if Bitcoin’s total supply were 21 billion instead of 21 million, with each BTC redenominated as 100,000 satoshis rather than 100 million, it would eliminate the perception of scarcity surrounding the digital asset. Schiff’s argument is that Bitcoin’s scarcity is more about perception than reality.

A Bitcoin advocate acknowledged Schiff’s point, agreeing that Bitcoin’s perceived scarcity is largely psychological. The supporter drew an analogy to Ferrari’s limited production, noting that while only approximately 250,000 Ferraris have ever been manufactured, scarcity alone does not determine value. Crypto investor Jeff Day countered this comparison, pointing out that Ferraris cannot function as currency and lack divisibility; you cannot own a fraction of a Ferrari. In contrast, even at Bitcoin’s current price point, individuals with $100 or less can purchase portions of the cryptocurrency, unlike with luxury vehicles.

When a crypto investor highlighted the irony of Schiff’s criticism given Bitcoin’s surge while gold, his preferred asset class, remains stagnant, Schiff responded that gold has merely taken a “temporary pause.” He claimed silver is outperforming Bitcoin. On July 10, Schiff advised investors to sell portions of their Bitcoin holdings and purchase silver instead. He argued that even if Bitcoin continues rising temporarily, silver should appreciate significantly more, and while Bitcoin faces potential crashes, silver’s downside appears limited. However, Bitcoin ultimately outperformed silver during the measured period. While silver gained over 3.98% in the past seven days, reaching its highest level since September 2011, Bitcoin increased 12.2% over the same timeframe.

This follows Schiff’s April prediction during the Iran-Israel conflict tensions, when he reignited debates about Bitcoin’s future by asserting that “the financial crisis of 2025 will kill” the cryptocurrency. This pessimistic forecast came just one month after he projected Bitcoin would fall to $65,000. As with previous predictions, the cryptocurrency, originally created in response to the 2008 global financial crisis when major financial institutions collapsed due to risky lending practices and the housing market crash, has continued defying skeptics. Since April’s low, Bitcoin has gained over 60%, outperforming gold, silver, the S&P 500, and every major asset class globally, rendering Schiff’s predictions inaccurate once again.

Despite Bitcoin’s surge since the 2022 bear market and growing institutional and retail adoption, several prominent investors have dismissed it as a viable asset class. In 2014, legendary investor Warren Buffett rejected Bitcoin at $600; it has since gained 19,400%. Similarly, Berkshire Hathaway’s late Vice Chairman Charlie Munger famously called Bitcoin “rat poison,” among other criticisms. JPMorgan CEO Jamie Dimon has also criticized Bitcoin’s limited supply, suggesting that creator Satoshi Nakamoto would return when Bitcoin reaches 20 million in supply and erase all existing bitcoins. However, former Binance CEO and Bitcoin advocate Changpeng Zhao has stated that even the most successful investors are not always correct about everything. He encouraged people to purchase Bitcoin, suggesting that in several years, current prices will represent only a small fraction of its eventual value.