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▲ Bitcoin (Bitcoin, BTC), cryptocurrency decline, Peter Schiff / AI generated image
Immediately after the U.S. Securities and Exchange Commission (SEC) allowed stock tokenization, Bitcoin (Bitcoin, BTC) showed a sharp rise. Peter Schiff, chief economist at Europac and a prominent gold advocate, warned that tokenized stocks would absorb Bitcoin's liquidity and act as a fatal negative factor.
According to the cryptocurrency specialized media Bitcoin.com on September 20 (local time), Chief Economist Schiff criticized the recent market euphoria head-on through his social media, stating, "Yesterday's massive Bitcoin rally after the SEC's tokenized stock announcement makes no sense at all." He argued that the lowered barrier to directly owning physical stocks on the blockchain is a net negative for the leading cryptocurrency Bitcoin, and that it has entered into direct competition with powerful real-world assets in the form of tokenized securities.
Schiff repeatedly emphasized the structural advantages of value storage methods based on real-world companies. Schiff pointed out, "The digital ownership of tokens issued based on blue-chip companies that generate profits and pay dividends is a far superior and more reliable store of value than tokens with no backing." Schiff, who characterized Bitcoin as a 'collapsing decentralized Ponzi scheme,' argued that tokenized stocks offer all the benefits of blockchain without the holding risks associated with Bitcoin.
He also poured out negative predictions regarding the capital flow of virtual asset investors. Schiff stated, "If you have a digital wallet, you can choose which tokens to hold, and soon you will choose tokenized stocks to put in your wallet." He concluded, "Some investors will prefer real stock tokens over Bitcoin, and ultimately, it just means that Bitcoin will have more tokens to compete with."
On the other hand, virtual asset proponents dismissed Schiff's claims, arguing that Bitcoin is a unique digital collateral asset differentiated from U.S. Treasury bonds or gold, and an asset forming the foundation of the newly emerging digital economy. This SEC action is the result of administrative authorities taking the initiative to ease regulations after the U.S. crypto market structure bill failed to gain the necessary support for a vote in the Senate plenary session. As institutional real-world asset tokenization officially begins, the market is keenly watching whether the emergence of tokenized stocks will absorb liquidity from the virtual asset market or promote capital inflow across the entire on-chain ecosystem.
[Article Summary]
-Peter Schiff criticized the Bitcoin (BTC) rally that occurred after the SEC allowed tokenized stocks as irrational.
-He argued that tokenized stocks based on blue-chip companies that pay dividends are a superior store of value compared to Bitcoin, which has no backing.
-Virtual asset proponents dismissed concerns about liquidity outflow, stating that Bitcoin is a unique digital collateral asset.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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