Gold bug Peter Schiff drew attention to the exorbitant fees charged for Bitcoin transactions after the halving. The famous economist evaluated this development as a failure for Bitcoin. BitMEX Research strongly disagreed with Peter Schiff questioning the effectiveness of Bitcoin.
Peter Schiff criticizes Bitcoin transaction fees
Famous economist Peter Schiff has set the stage for a heated debate on the effectiveness of Bitcoin (BTC) as a digital currency following the completion of the fourth Halving event. Schiff criticized Bitcoin’s rising transaction fees and slow transaction times. The gold bug has cast doubt on BTC’s ability to function as a viable medium of exchange. Moreover, Schiff’s initial post highlighted the staggering cost of completing a Bitcoin transaction. In this context, Schiff said:
The cost of completing a Bitcoin transaction is now $128 and it takes half an hour to complete the transaction. This is another reason why Bitcoin cannot function as a digital currency. The cost of actually using Bitcoin as a currency is prohibitively high for almost all transactions. This is a failure.
BitMEX Research responded to the gold bug
However, users said these statistics were incorrect. In this regard, they stated that the average Bitcoin transaction time varies between 10 and 20 minutes. Additionally, amid Schiff’s scathing assessment, BitMEX Research has come out with a dissenting perspective. Quoting Schiff’s tweet, BitMEX Research challenged the economist’s narrative of Bitcoin’s “failure.”
“The high cost of $128 to send Bitcoin is an indicator of success, not failure,” BitMEX Research analysts said. They compared the situation to a crowded restaurant. Additionally, BitMEX Research acknowledged that while rising fees are an indicator of popularity, high fees may deter usage and inhibit future adoption.
Peter Schiff: Gold works better than Bitcoin!
Amidst these debates, a Bitcoin supporter questioned the cost of sending 1lb of gold securely around the world. Economist Peter Schiff also felt the need to answer this question. Schiff highlighted gold’s utility as a currency. He argued that such costs were meaningless in this context. Schiff expressed his thoughts on this issue as follows:
This is irrelevant. People do not currently use gold as a currency. But if they wanted, gold could be tokenized on a Blockchain. Processing time is almost instantaneous and costs are minimized. Gold works much better on Blockchain than Bitcoin.
cryptokoin.comAs you follow from, he shared a sarcastic comment after the Bitcoin Halving event ended. Schiff claimed that Bitcoin investors’ net worth will soon be ‘halved’. So he hinted that investors would be disappointed. These attitudes of Schiff drew reaction in the cryptocurrency community.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!