Peter Schiff Challenges Bitcoin's 21 Million Supply Cap

Peter Schiff, CEO of Euro Pacific Capital, reignited the debate surrounding Bitcoin's supply cap of 21 million BTC. In a series of online posts on July 11, 2025, Schiff questioned the significance of this limit, suggesting that the perceived scarcity of Bitcoin is more a matter of public belief than an objective reality. He argued that if the total supply were 21 billion instead of 21 million, the number of satoshis—the smallest unit of Bitcoin—would remain the same, implying that the supply of Bitcoin is essentially meaningless.

Schiff's argument hinges on the idea that the scarcity of Bitcoin is an illusion created by the public's perception of the 21 million cap. He posited that if the supply were increased to 21 billion, the psychological impact on the public's belief in Bitcoin's scarcity would be diminished. This perspective sparked a wave of responses from users on X, with many disagreeing with Schiff's take. Some users pointed out that the scarcity of Bitcoin is defined by its fixed limit rather than the unit denomination in which it is measured. For instance, one user compared it to cutting a pizza into different numbers of slices, arguing that the amount of pizza remains the same regardless of how it is divided.

The debate also touched on the psychological effects of supply numbers on public belief. Schiff's comments highlighted the importance of perception in the value of Bitcoin, suggesting that the cryptocurrency's worth is largely influenced by how people perceive its scarcity. This perspective was met with mixed reactions, with some users accusing Schiff of trying to increase engagement on the platform rather than providing a genuine critique of Bitcoin.

Schiff's criticism of Bitcoin extends beyond its supply cap. He has repeatedly defended his preference for physical assets, such as gold and silver, stating that these assets retain value in real-world applications. In contrast, he views Bitcoin as a speculative asset that lacks intrinsic value. Schiff has also criticized the growing adoption of Bitcoin by corporations, calling it a risky trend and accusing companies of lacking real business models. He has warned that the sale of dollars to buy Bitcoin poses grave dangers to the broader economy, suggesting that it weakens the U.S. economy by increasing pressure on the dollar.

Despite Schiff's criticisms, interest in Bitcoin from institutional and retail investors has continued to grow. Many users on X accused him of changing his views to suit the narrative, despite his previous declarations about Bitcoin. The debate surrounding Bitcoin's supply cap and its perceived scarcity highlights the ongoing controversy surrounding the cryptocurrency and its role in the financial landscape. As the adoption of Bitcoin by public companies and investment giants continues to expand, the debate over its value and sustainability is likely to persist.

Schiff’s critique of Bitcoin’s 21 million supply cap highlights ongoing doubts about its scarcity. This has sparked discussions among investors, although the market and Bitcoin’s price remain largely influenced by institutional activities. As Bitcoin achieved a new all-time high, numerous companies increased their purchases, contributing to institutional inflows. Schiff’s argument has not swayed market participants, many of whom dismiss the concerns as old rhetoric.

Cryptocurrency markets remain robust despite Schiff’s criticism, mainly due to institutional investments and macroeconomic conditions rather than debates on Bitcoin’s supply. Bitcoin and ETH’s market positions appear stable in light of NFT market dynamics and emerging technological trends. Arthur Hayes, co-founder of BitMEX, weighed in on the situation, indicating a bullish outlook despite temporary liquidity drains due to U.S. Treasury activities. Hayes suggested potential ETH outperformance in the upcoming altcoin season.