Peter Schiff Comes Up with New Reason Why Bitcoin Is a Failure

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Peter Schiff, known as a gold advocate, has criticized Bitcoin on social media again. This time, his concern is about its high transaction fees.

According to Schiff’s observation, a Bitcoin transaction now costs an astonishing $128, making it less effective as a digital currency in the eyes of the market analyst.

Shiff expressed that the expense involved in transacting with Bitcoin as a regular currency is extremely high for most users, making it an unsuccessful option.

According to U.Today’s report, Bitcoin earned an impressive $78.3 million in transaction fees on April 20th, significantly surpassing Ethereum‘s fee generation.

Following the halvening event, miners saw substantial earnings exceeding $100 million – a new record.

A significant increase in fees occurred after the introduction of the Runes protocol, enabling the development of fungible tokens on the Bitcoin platform.

Despite my previous remarks, it remains uncertain if the excitement over Runes can be maintained. As shown by YCharts statistics, Bitcoin transaction fees reached $34 on April 21st. Although this fee level is still significant, miners may not be able to sustain such profits for an extended period after the halving event.

Tokenized gold? 

Bitcoin is often promoted as a more convenient choice than gold for transactions. Nevertheless, according to Schiff, using Bitcoin as a currency at the moment is infeasible due to long transaction processing times, which can take up to an hour.

Surprisingly, Schiff posits that gold could function more effectively as a currency if it is tokenized, aligning with the principles of the technology behind Bitcoin.

“People aren’t using gold as a currency right now. But if they wanted to, gold could be tokenized on a block chain. Transaction time would be almost instantaneous and cost minimal. Gold works much better on a block chain than Bitcoin,” he said. 

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2024-04-22 10:15