Economist Peter Schiff set the stage for a heated debate on the efficacy of the Bitcoin (BTC) as a digital currency following the conclusion of the fourth Halving event. Schiff’s fiery criticism, voiced on social media platform X, slammed Bitcoin’s escalating transaction fees and sluggish processing times. However, BitMEX Research, an arm of the popular crypto exchange, countered Schiff’s claims.
BitMEX Counters Peter Schiff’s Outlook On Bitcoin Transaction Fees
In a recent post on X, Schiff cast doubt on its ability to function as a viable medium of exchange. Moreover, Schiff’s initial tweet highlighted the staggering cost of completing a Bitcoin transaction. He stated, “The cost to complete a #Bitcoin transaction is now $128 and it takes a half hour to process.” As the situation deteriorated further, with transaction times exceeding an hour, Schiff reiterated his skepticism.
He noted, “It now takes over an hour to process a Bitcoin transaction.” However, users indicated that these statistics were wrong as the average Bitcoin transaction time ranges between 10 to 20 minutes. Furthermore, amid Schiff’s scathing assessment, BitMEX Research offered a dissenting viewpoint. Quoting Schiff’s tweet, BitMEX Research challenged the economist’s narrative of Bitcoin’s “failure.”
They argued, “The high $128 cost to send Bitcoin is an indicator of success, not failure.” They likened the situation to a crowded restaurant. Moreover, BitMEX Research acknowledged that while the increased fees is indicative of popularity, the high charges could deter usage and hinder future adoption.
Also Read: Peter Schiff Discredits Bitcoin As Digital Currency, States Post-Halving Flaws
Peter Schiff Advocates Gold Tokenization
When a Bitcoin supporter questioned the cost of shipping 1lb of gold securely around the world, economist Peter Schiff redirected the conversation. Moreover, he asserted the current irrelevance of such costs in the context of gold’s utility as a currency. Schiff contended, “That’s irrelevant. People aren’t using gold as a currency right now.”
However, Schiff proposed an alternative solution, suggesting the tokenization of gold on blockchain technology. The economist argued, “But if they wanted to, gold could be tokenized on a blockchain. Transaction time would be almost instantaneous and cost minimal.”
Schiff further emphasized the potential benefits of tokenizing gold on blockchain and how Bitcoin falls short. He stated, “Gold works much better on a blockchain than Bitcoin.” Earlier, after the Bitcoin Halving event concluded, Schiff posted a sarcastic comment that attracted backlash. He noted that Bitcoin investors will soon witness a ‘Halving’ of their net worth, indicating a downfall of BTC.
Also Read: Bitcoin Price Could Rise 67%; Buy or Sell?
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