Peter Schiff: USDT and USDC will overtake Bitcoin in market capitalisation

The combined market capitalisation of the two leading dollar-backed stablecoins — USDT and USDC — will exceed Bitcoin’s market capitalisation. The forecast comes from a gold advocate and critic of the first cryptocurrency, Peter Schiff.

With the market capitalization of all #crypto tokens below $793 billion, the value of the two largest dollar-backed stable coins represents 14% of the market. That’s 80% of the value of #Etherum, the 2nd largest. Soon the value of stable coins will exceed the value of #Bitcoin.

— Peter Schiff (@PeterSchiff) November 21, 2022

“With a market capitalisation of all crypto assets below $793 billion, the value of the two largest dollar-backed stablecoins accounts for 14% of the market. That’s 80% of the value of Ethereum, the second-largest cryptocurrency,” — wrote the president of Euro Pacific.

In his view, the market capitalisation of USDT and USDC will soon surpass that of Bitcoin.

According to CoinGecko, at the time of writing the latter stands at $317.2 billion. The combined value of the two stablecoins reaches $109.7 billion.

Schiff pointed to the growth in the supply of cryptocurrencies and a decline in demand. In his assessment, over the past year the first metric increased by about 50%.

The supply of #CryptoCurrencies is soaring as demand for #cryptos is collapsing. Over the past year the supply of cryptos grew by around 50% to almost 22,000. But during that same time period the combined market capitalization fell by about 73%. #Bitcoin mania is over. Buy #gold.

— Peter Schiff (@PeterSchiff) November 20, 2022

“But in that same period total market capitalisation fell by about 73%. Bitcoin mania is over. Buy gold,” — Schiff added.

The president of Euro Pacific also commented on the collapse of FTX and government oversight. He saw no need for greater regulation, calling to “end the US Federal Reserve, government stimulus, subsidies, guarantees and rescue operations”.

This tweet was inspired by those calling for more government regulation in the wake of the #SBF and #FTX frauds. The beauty of free market capitalism is that it self-regulates. Competition for reputation and profit and loss are better regulators than easily captured bureaucrats.

— Peter Schiff (@PeterSchiff) November 20, 2022

“This tweet was inspired by those calling for stronger government regulation in response to the frauds of SBF and FTX. The beauty of free-market capitalism is that it self-regulates. Competition for reputation, and profits and losses, are the best regulators,” Schiff said.

As a reminder, in early May Schiff allowed for a fall to $10,000 in Bitcoin if the $30 000 level is breached. In August he repeated his forecast, questioning whether Bitcoin could reach fresh highs.

In October, the gold advocate criticised former MicroStrategy CEO Michael Saylor and CNBC for advertising Bitcoin, accusing them of pumping the asset.

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