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Peter Schiff says Bitcoin is losing market dominance, but acknowledges that it has outperformed gold in the last 10 years

The American economist Peter Schiff, CEO of Euro Pacific Capital, became one of the main critics of Bitcoin and perhaps one of the most insistent voices against it, as well as a great defender of gold as an investment.

Peter Schiff says Bitcoin is losing market dominance, but acknowledges that it has outperformed gold in the last 10 years

Peter Schiff says Bitcoin is losing market dominance, but acknowledges that it has outperformed gold in the last 10 years (Image: Bitcoin.com)

He wrote in a tweet what he considers to be the consequences of the loss of market dominance of the main cryptocurrency.

Schiff tweeted that the flagship cryptocurrency is losing dominance as it has to compete for market share with nearly 12,000 other cryptocurrencies. This is his message:

“Bitcoin is losing market dominance because it competes for market share with over 11,500 other cryptos. None of these digital tokens are really scarce, as new cryptos are created every day and the most significant difference is the name. Supply will eventually overwhelm demand.”

Schiff’s criticism is based on a certain fact. With a current market capitalization of $953 billion, Bitcoin today has 43% dominance of the crypto market. This is much lower than the domain it had in January 2021 when it exceeded 69%, and much lower than the domain that Bitcoin had in 2016, when it exceeded 91%.

At the same time, the number of cryptocurrencies has grown exponentially, now exceeding 11,590. But of these, only the 10 with the largest capitalization dominate 82% of the market, while only 18% is distributed among thousands.

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Interestingly, Schiff wrote a tweet acknowledging that Bitcoin has outperformed traditional assets, such as gold, in the last ten years, but compared to what is currently happening with Ethereum.

“Bitcoin beating gold over the past ten years doesn’t prove it’s better than gold. Bitcoin has beaten every traditional asset class over that time period. Does that prove Bitcoin is better than stocks or real estate? Ethereum beat Bitcoin over the past six years. Is it better?”

Schiff adds new arguments every week (although many times they are repetitive) to attack BTC. On August 20, he labeled as “idiots” those who did not sell their bitcoins when it was at $48,000. Well, Schiff was wrong again because the main cryptocurrency exceeded that price and today its higher than $50,900.

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