- Bitcoin hater Peter Schiff believes that speculators will start dumping bitcoin after the pot stock crash.
- The crypto asset and pot stocks do not have a correlation.
- Schiff’s argument stands defeated given that the two assets have entirely different characteristics.
Peter Schiff doesn’t like bitcoin. He gets really happy whenever the price of the flagship cryptocurrency takes a hit. In fact, the market bear does not let go of any opportunity to take a swipe at the crypto asset, hoping that his actions will bring more hurt to cryptocurrency enthusiasts. His latest ploy to bring down bitcoin is comparing the cryptocurrency to pot stocks.
Schiff justifies his hatred for bitcoin using pot stock meltdown
Schiff, who is the CEO of Euro Pacific Capital, says that bitcoin will eventually follow the path of pot stocks. He believes that the rally in pot stocks seen earlier this year was driven by speculators, who were also buying the crypto asset.
The pot stock rally went bust in recent months. This is evident from the sharp decline in the U.S. Marijuana Index over the past six months.
This decline in marijuana stocks has led Peter Schiff to believe that bitcoin will face a similar fate as speculators try and cut some of their losses by selling the crypto asset before it gets too late. However, there isn’t much merit to Schiff’s view, as finding a correlation between pot stocks and bitcoin is akin to looking for a needle in a haystack.
Nice try, but there’s nothing to worry about
The first reason that defeats Peter Schiff’s theory that a bitcoin price crash will follow the pot stock crash is that both asset classes are not correlated. In fact, research proves that bitcoin’s direction does not depend on stock market action.
There was a time experts believed that bitcoin had the potential to…