Peter Schiff, a financial commentator and Bitcoin critic, has recently caused a stir by criticizing Bitcoin exchange-traded funds (ETFs). He argues that these ETFs go against the fundamental principles of Bitcoin.
Surprisingly, Charles Hoskinson, the founder of Cardano, has backed Schiff’s view. Hoskinson’s support shows that he agrees with Schiff’s critique of Bitcoin ETFs.
Peter Schiff Criticizes Bitcoin ETFs, Gains Support from Crypto Community
Peter Schiff argues that Bitcoin exchange-traded funds (ETFs) undermine Bitcoin’s core principles of decentralization and peer-to-peer transactions. He contends that ETFs compromise Bitcoin’s decentralization, make it vulnerable to government seizure, and prevent it from being used as a currency for payments or for cross-border transfers.
Schiff also highlights security concerns, noting that investors holding Bitcoin through ETFs do not truly own their Bitcoin if they lack control over their private keys. He further criticizes the motivations of new investors, suggesting they are primarily focused on price and profit, which he believes could indicate a potential collapse similar to a pyramid scheme.
Remarkably, Schiff’s critique is receiving widespread approval from members of the cryptocurrency community, signaling a notable alignment with his views on Bitcoin ETFs.
Schiff’s Bitcoin ETF Critique Receives Broad Support from Crypto Community
Charles Hoskinson, co-founder of Input Output Global, has voiced his agreement with Peter Schiff’s criticism of Bitcoin exchange-traded funds (ETFs), stating, “Peter is making a cogent point about Bitcoin.” Similarly, Crypto Rover, a well-known crypto YouTuber, and podcaster Peter McUnburdened, has acknowledged the validity of Schiff’s arguments. Other members of the crypto community have also supported the view that many investors are focused on profit rather than Bitcoin’s technological benefits.
Eric Balchunas, Senior ETF Analyst at Bloomberg, also commented, calling Schiff’s argument a “fair point.” However, he compared Bitcoin ETFs to gold ETFs and mutual funds, questioning the perceived differences in holding assets through such financial instruments.
Schiff’s recent remarks follow his previous criticisms of Donald Trump’s support for Bitcoin, which Schiff argued was a strategic move to attract votes and contributions from the crypto community. Schiff had claimed that Trump’s promises to make Bitcoin a reserve asset were unlikely to be fulfilled.
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