Economist Peter Schiff sparked a heated argument about Bitcoin‘s effectiveness as a digital currency after the fourth Halving event ended. On social media platform X, Schiff criticized Bitcoin’s rising transaction fees and slow processing times in strong terms. However, BitMEX Research, a division of the well-known crypto exchange, challenged Schiff’s assertions.
BitMEX Counters Peter Schiff’s Outlook On Bitcoin Transaction Fees
In a recent post on X, Schiff expressed concern over Bitcoin’s effectiveness as a means of payment. His initial tweet drew attention to the high fee and lengthy processing time for Bitcoin transactions. He pointed out that it currently costs around $128 and takes about 30 minutes to complete a transaction. As delays in processing times worsened, exceeding an hour, Schiff continued to voice his doubts about Bitcoin’s viability.
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.”
The expensive $128 transaction fee for Bitcoin is seen as a sign of thriving demand rather than a drawback. This was compared to a popular restaurant with long waiting lines. However, BitMEX Research pointed out that while the surging fees symbolize popularity, they could also discourage usage and potentially hinder broader acceptance in the future.
Peter Schiff Advocates Gold Tokenization
When someone who backs Bitcoin challenged the expense of transporting a pound of gold safely across the globe, economist Peter Schiff shifted the topic. He further argued that such costs held little significance in relation to gold’s role as a currency at present. Schiff stated, “That doesn’t matter. People aren’t utilizing gold as currency currently.”
Schiff suggested an different approach: instead of the traditional methods, he proposed tokenizing gold using blockchain technology. According to him, this would lead to nearly instantaneous transactions with minimal fees.
Schiff highlighted the advantages of representing gold as a token on a blockchain and criticized Bitcoin in simpler terms. He expressed, “Gold is more suitable for blockchain than Bitcoin.” Previously, following the Bitcoin Halving, Schiff made a sarcastic remark that sparked controversy. He suggested Bitcoin investors would experience a significant decrease in their wealth, foreshadowing a potential decline of BTC.
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2024-04-22 14:41