Peter Schiff, Gold Fund CEO and Austrian economist said that bitcoin, the original cryptocurrency, is losing its market dominance to competitors. Recently, the cryptocurrency industry shed a trillion dollars in the market as Bitcoin cracked below the important $20K level.
Last month, the Bitcoin price surged above the $23,000 handle. Its precipitous fall over the remainder of August through this week knocked some 20% off its total market capitalization.
Peter Schiff said, “Not only is #Bitcoin crashing, but its dominance has fallen to 38.1%, its lowest since June of 2018. Competing with almost 21,000 other intrinsically worthless digital tokens, NFTs and #crypto-related equities are taking a toll. Even if Bitcoin is scarce, its alternatives are not.”
However, several commentators on crypto Twitter immediately lashed out at Peter Schiff’s claims. Even his own son Spencer Schiff contended with his position that all the competition in the crypto markets is swamping Bitcoin.
Many new cryptocurrencies don’t have the Satoshi blockchain’s notorious supply cap of 21 million coins. Bitcoin doesn’t necessarily have competitors in the cryptocurrency sector. The growing cryptocurrency market offers a variety of different virtual financial services.
Moreover, as Peter Schiff pointed out, not all of Bitcoin’s peers offer users a currency based partly on the economics of digital scarcity. So they are not exactly competing for the same users or their dominant user motivations and values.