Bitcoin, the world’s largest cryptocurrency by market capitalization, has faced criticism from various sources such as economists, politicians, bankers, and investors. Since its launch in 2008, Bitcoin has received numerous negative reviews, with some critics calling it a scam or predicting that it will eventually become worthless.
Despite Bitcoin’s growth and maturation in recent years, some critics have remained steadfast in their rejection of the cryptocurrency. Cointelegraph has identified several commentators who continue to reject Bitcoin or maintain a skeptical stance even as it reaches new all-time highs in 2024.
One prominent critic is American stockbroker Peter Schiff, a well-known advocate for gold investments. Schiff has been criticizing Bitcoin since at least 2013, when its value ranged from $100 to $1,000. Despite his skepticism, Schiff’s son, Spencer Schiff, decided to invest his entire portfolio in Bitcoin in 2021. Schiff’s prediction that Bitcoin would never reach $100,000 was proven wrong, but he still expresses concerns about the US government’s potential adoption of Bitcoin and its impact on the dollar.
Another critic is Paul Krugman, an American economist and journalist who won the Nobel Prize for Economics in 2008. Krugman has been critical of Bitcoin since its early years, writing articles such as “Bitcoin is evil” in 2013. He has described cryptocurrencies as a Ponzi scheme and believes they are primarily used for illegal transactions. Krugman argues that cryptocurrencies like Bitcoin facilitate criminal activity more effectively than cash banknotes.
Officials from the European Central Bank (ECB) have also criticized Bitcoin. Ulrich Bindseil, the ECB’s payments director, and Jürgen Schaaf, an ECB adviser, have written papers warning about the “distributional consequences of Bitcoin.” They argue that Bitcoin holders exploit newer buyers by selling at higher prices. The ECB officials claim that Bitcoin has failed to become a global decentralized digital currency and is instead used for illicit transactions.
Jamie Dimon, CEO of JPMorgan Chase, remains a skeptic of Bitcoin despite his company’s involvement in spot Bitcoin exchange-traded funds (ETFs). Dimon referred to Bitcoin as a “pet rock” and declared that he was done talking about it. It is unclear whether his stance has changed since then.
Rafi Farber, publisher of the gold-focused marketplace service End Game Investor, is another critic of Bitcoin. He believes that continuous money printing will eventually lead to a currency collapse, and Bitcoin’s increasing price contributes to more money printing. Farber argues that buying Bitcoin stimulates the price of US Treasurys and spreads US inflation.
Despite their criticisms, some critics acknowledge that their views could change depending on how Bitcoin performs in a global financial crisis. They believe that if Bitcoin can maintain stability in terms of gold ounces, it could be considered a viable derivative of money. However, they remain skeptical and predict further declines in Bitcoin’s value.
Overall, these Bitcoin critics continue to express their reservations and skepticism about the cryptocurrency, even as it reaches new heights.