Bitcoin’s anticipated price surge might face a detour, with economist and outspoken critic Peter Schiff casting a dark cloud over its future. In a recent social media whirlwind, Schiff painted a grim picture, predicting a potential price plunge triggered by an imminent regulatory crackdown led by SEC Chair Gary Gensler.

Schiff’s primary concern revolves around Gensler’s recent approval of spot Bitcoin ETFs. He views it as a calculated move, potentially setting the stage for stricter regulations to come. While some argue that Gensler’s classification of Bitcoin as a commodity offers a shield, Schiff believes anti-money laundering (AML) regulations could provide the SEC with a backdoor entry to exert control.

His skepticism isn’t limited to regulatory red tape. Peter Schiff questions Bitcoin’s very essence, its intrinsic value, and its real-world utility. He highlights the complexities and costs associated with direct purchases, pointing out the irony of needing third-party custodians in a system designed to bypass intermediaries. This echoes concerns raised by investor Mohamed El-Erian about Bitcoin’s viability as a currency and the logic behind investing in Bitcoin ETFs.

Peter Schiff even predicts that inflows into these ETFs will primarily come from existing Bitcoin positions, essentially a case of rearranging deck chairs on a sinking ship. He doubts Bitcoin’s ability to compete with established stores of value like gold, citing its lack of tangible utility and historical price volatility.

These stark warnings have ignited a firestorm of debate within the crypto community. While some agree with Schiff’s regulatory anxieties, others dismiss his skepticism as FUD (fear, uncertainty, and doubt). Regardless of his critics, Schiff’s pronouncements raise crucial questions about Bitcoin’s future and its resilience in the face of regulatory headwinds.

Is Bitcoin facing a regulatory winter? Will its utility and value be undermined by increased scrutiny? Or will it weather the storm and emerge stronger? Only time will tell, but Schiff’s warnings serve as a sobering reminder of the potential challenges that lie ahead for the world’s leading cryptocurrency.

Also See: Bitcoin Rollercoaster Continues After ETFs Approval