A prominent economist Peter Schiff warned investors against holding cash as a long-term strategy, warning of an erosion of purchasing power amid rising inflation concerns.
What's going on: Independent financial analyst and Bitcoin (CRYPTO: BTC) skeptic responded to user X who expressed concern about investing his $20,000 savings, saying, “I think investing in cash is one of the riskiest things you can do. You may not lose money, but your money will lose a lot of its purchasing power.”
Don't miss:
Schiff's comments came as part of a broader discussion about US Treasury yields and monetary policy. He noted that although the 10-year Treasury yields 4.25%, he expects a higher yield due to the increase in national debt and the increase in the budget deficit.
“When the economy officially enters the next recession, get ready for a massive QE program now!” Schiff wrote in X, referring to the Federal Reserve's future rate reduction measures.
See also: This Adobe-backed marketing startup went from a $5 million valuation to $85 million working with brands like L'Oréal, Hasbro, and Sweetgreen in just three years – here's how it has a $1,000 investment opportunity for just $0.50 /assignment today.
Why Is It Important?: Schiff's latest comments are consistent with his previous warnings about the vulnerability of the US dollar. In August, he predicted a possible fall in the dollar due to increased bets on rate cuts, which had a negative impact on the currency. He noted that the US dollar index fell to its lowest level since late 2023, suggesting further weakness ahead.
Schiff also spoke about his skepticism about Bitcoin, saying it has no intrinsic value and will fail. He often compares the digital nature of Bitcoin to the physical nature of gold, which he promotes as a stable investment.
In September, Schiff criticized investors for choosing Bitcoin ETFs over gold ETFs, saying they were betting on the wrong horse. Despite massive inflows, Bitcoin ETFs have underperformed compared to gold ETFs, reinforcing his belief in gold's superiority as an investment.
Source link
