The head of an Orange County, California-based private equity group is convinced that Bitcoin is in the throes of a major crash. Eric Schiffer, the CEO of Patriarch Equity, says that Bitcoin’s incredibly high prices as of late are a clear sign that things are about to hit the fan for the popular cryptocurrency, resulting in many investors losing big time.
Rising in price from under $1,000 back in January, to nearly $20,000 today, Bitcoin’s bullish run has been nothing short of tremendous as far as investment instruments are concerned. But its days are numbered, believes Schiffer, who is taking to the media to warn people that things could get ugly – and fast.
“I don’t want people to walk through what is going to be the bloodiest financial danger of the 21st century,” Schiffer is quoted as saying.
Despite Bitcoin critics warning all year long that Bitcoin was going to crash, the digital currency has only continued to become more popular and more valuable. Just a few weeks ago, the Chicago Board Options Exchange (CBOE) opened the gates to a Bitcoin futures market, which has driven more investors into the pool.
But all of this success somehow points to impending failure, in Schiffer’s view. He warns that people should avoid Bitcoin like the plague, as getting anywhere near it could mean putting one’s savings account and even family at risk of financial fallout.
“I think bitcoin is a ‘tower of death,'” Schiffer says. “It is going to result in the imminent death of your investment – a thermonuclear death.
“Right now we are looking at a financial bubble that is bigger than the tulip craze and I believe that we are headed for a bitcoin crash that will supersede any financial worries of the 21st century,” he added. “People are going to be shocked when they try to liquify their bitcoins.”
In defending the technology platform upon which Bitcoin was built, Schiffer says he believes that cryptocurrency is the wave of the future. But he isn’t convinced that Bitcoin is the way to go, nor does he believe that it will remain as the crypto leader moving into the future.
“Bitcoin is going to go through an extinction level event,” he insists, referring to Bitcoin in terms of being a “Vegas-style gamble” and a “money monster.”
“What will happen is that a new competitor will emerge to one day take over. When this thing crashes, it will be the pilots jumping the Hindenburg – and when it does, it will be a financial nuke going off.”
Jamie Dimon, the head of JPMorgan Chase, completely agrees with Schiffer. The head of this infamous financial dynasty is perhaps one of Bitcoin’s biggest critics – even more so than Schiffer – having recently stated that people who purchase Bitcoin are “stupid.” When asked by the media to explain himself, Dimon refused, stating that he was “not going to talk about bitcoin anymore” because it’s a “fraud.”
Others like Jordan Hiscott from Ayondo Markets hold a very different view. Hiscott sees immense and growing demand for Bitcoin that he believes will only continue to drive its price increasingly higher. Hiscott does not see a financial crash for Bitcoin looming on the horizon, and he says that its biggest problem may simply be defining its purpose in the world.
“The demand for the asset remains highly elevated and the fact that you can now trade it on an exchange means it’s open to a wider audience,” he says.
“I’m pretty sure Bitcoin will be $20,000 by the end of the year, but for it to be truly successful, it will need to decide whether it’s a genuine means of exchange or just a digital store of value.”
Sources for this article include: