Peter Schiff, Chief Economist at Euro Pacific Capital and a well-known critic of Bitcoin, has expressed that the cryptocurrency’s capped supply of 21 million coins, often heralded as a marker of its scarcity, holds little significance.
Schiff posited that if Bitcoin’s total supply were dramatically increased to 21 billion, with each Bitcoin redenominated as 100,000 satoshis instead of 100 million, the notion of scarcity surrounding Bitcoin would be diminished.
“That’s my point exactly. Bitcoin’s scarcity is about perception, not reality,”
he tweeted on July 12, 2025.
Peter Schiff’s Controversial Stance on Bitcoin Supply
A supporter of Bitcoin acknowledged Schiff’s perspective, agreeing that the asset’s perceived scarcity is primarily a psychological phenomenon. They drew a comparison to Ferrari, noting that the limited production of around 250,000 units does not solely dictate its value.
In response, crypto investor Jeff Day challenged this analogy, arguing that Ferraris cannot function as a currency and are not divisible, making it impossible to own a fraction of one.
“Yes but Ferraris can’t be used as money. Also, they are not divisible. In other words, you can’t own a part of a Ferrari. Even at 115k, Bitcoin can be bought by people with 100 dollars or even less. You can’t do that with Ferraris,”
Day stated on July 13, 2025.
Currently, Bitcoin’s price stands at $120,000, allowing individuals with smaller amounts, even less than $100, to purchase fractions of the cryptocurrency, a stark contrast to luxury vehicles.
In a discussion about Schiff’s criticism of Bitcoin, particularly as it continues to climb while gold remains flat, Schiff claimed that gold is simply experiencing a “temporary pause” and asserted that silver is outperforming Bitcoin.
“You always need an asset to back your story, don’t you Peter? First it was gold, then silver… soon it’ll be copper if it suits the narrative. Just admit Bitcoin keeps ruining your day,”
one user quipped.
Schiff’s Investment Advice Backfires as Bitcoin Hits New Highs
On July 10, Schiff suggested that investors sell a portion of their Bitcoin and redirect their investments into silver, arguing that while Bitcoin may rise temporarily, silver should appreciate at a much faster rate. He claimed that Bitcoin’s volatility poses a greater risk than silver.
“Despite Bitcoin’s new high today, had you followed the advice to sell Bitcoin and buy silver in yesterday’s post, you would be better off. Plus, you would have taken on a lot less risk,”
Schiff tweeted on July 11, 2025.
However, in the following days, Bitcoin demonstrated impressive growth, outperforming silver. While silver increased by more than 3.98% to reach $39.04 per ounce, Bitcoin surged by an impressive 12.2% during the same period.
This comes after Schiff’s dire predictions earlier this year during the Iran-Israel conflict when he asserted that “the financial crisis of 2025 will kill” Bitcoin—this followed a previous forecast where he predicted Bitcoin would drop to $65,000.
Despite Schiff’s gloomy outlook, Bitcoin, which was introduced in response to the 2008 financial crisis, has consistently defied its critics. Since its April low of $74,508, Bitcoin has risen over 60%, outperforming gold, silver, and other major asset classes worldwide, marking yet another miscalculation in Schiff’s predictions.
“BREAKING: Bitcoin surges to a record $123,000, now up +66% since the April 2025 low. In just 7 days, Bitcoin has added +$20,000,”
announced The Kobeissi Letter on July 14, 2025.
Despite a roughly 700% increase since the bear market of 2022 and an uptick in both institutional and retail investment, skeptics like legendary investor Warren Buffett, who dismissed Bitcoin when it was priced at $600, continue to view it unfavorably; since then, Bitcoin has surged 19,400%.
Similarly, late Berkshire Hathaway Vice Chairman Charlie Munger famously denounced Bitcoin as “rat poison.”
“Berkshire Hathaway CEO Charlie Munger calls Bitcoin a ‘rat poison,'”
a tweet stated on July 13, 2025.
Moreover, JPMorgan CEO Jamie Dimon has criticized Bitcoin’s fixed supply, suggesting that Satoshi Nakamoto might return to erase existing bitcoins once the total reaches 20 million. Yet, former Binance CEO and Bitcoin proponent Changpeng Zhao emphasized that even the most successful investors are not infallible and urged people to invest in Bitcoin, predicting that current prices will represent only a fraction of its future value.
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