U.Today – In a recent tweet, noted economist and gold advocate Peter Schiff made a comparison between and traditional fiat currencies. Schiff, a well-known critic of Bitcoin, highlighted the main difference and similarity between the two, which sparked reactions from the cryptocurrency community.
According to Schiff, the main similarity between traditional fiat currencies and Bitcoin is that both derive their market value from the faith people have in them. In response to user X who refuted this claim by saying that “bitcoin was proof of work,” Schiff declared Bitcoin “proof of faith,” adding that “work doesn’t produce anything of value. So it’s proof of faith.”
Schiff went further to point out the main difference between the two asset classes, indirectly highlighting Bitcoin’s ability to create wealth, saying: “The main difference is that no one expects to get rich by holding cash. That’s why trust in Bitcoin can be lost more easily. “
Schiff, a staunch crypto critic, continues to dismiss Bitcoin while championing gold. He has previously criticized BTC exchange-traded funds (ETFs), arguing that they undermine the decentralized nature of crypto.
Bitcoin price is preparing for a big move
At the time of writing, BTC is up 1.04% in the last 24 hours to $105,278 after hitting a low of $101,200 amid Thursday’s early session selloff.
According to Glassnode, Bitcoin’s 60-day range is currently tighter than the current trading range. Historically, similar patterns have signaled bursts of volatility.
In a tweet, Glassnode noted that “Bitcoin’s current 60-day price range is very tight. Historically, periods of tight price ranges have often preceded increased volatility,” he wrote. Additionally, 20% of BTC supply is concentrated within ±15% of the spot price, creating the potential for heightened market volatility as investor profitability changes.
In the broader markets, investors are now looking ahead to the next meeting of the Federal Open Market Committee on 28-29. January, when a reduction in interest rates could be announced. At its December meeting, the Fed signaled two rate cuts for 2025, indicating a slow and cautious approach.
