Influential economist Peter Schiff called Bitcoin (CRYPTO: BTC) the biggest bubble ever on Monday, surpassing even the dot-com bubble of the late 1990s.
What Happened: Schiff, a staunch Bitcoin critic, expressed his views on the soaring valuation of the world's leading cryptocurrency. He noted that the market capitalization of Bitcoin was over $2 trillion, which is higher than the combined market of around 400 dot-com companies at their peak before they went bankrupt.
"Congratulations, Bitcoiners, on blowing the biggest bubble ever!" Schiff jabbed Bitcoin investors.
— Peter Schiff (@PeterSchiff) December 16, 2024
About 400 publicly traded dot-com companies went bankrupt when the bubble popped. At their peak, those 400 companies had a market cap of $1.7 trillion. The current market cap of #Bitcoin alone now exceeds $2 trillion. Congratulations Bitcoiners on blowing the biggest bubble ever!
As is well known, the dot-com bubble was a period of rapid growth in U.S. technology stock equity valuations in the late 1990s, eventually bursting between 2001 and 2002. Several of the most hyped tech companies ended up going bankrupt, such as Pets.com, 360networks, and eToys.com, while the likes of Microsoft and Amazon weathered the storm.
This isn't the first time Schiff has expressed skepticism about Bitcoin. He has previously dismissed Bitcoin's bull run as a "popular delusion" and "madness of crowds," warning that the losses when the bubble pops will be "staggering."
Why It Matters: This isn't the first time Schiff has expressed skepticism about Bitcoin. He has previously dismissed Bitcoin's bull run as a "popular delusion" and "madness of crowds," warning that the losses when the bubble pops will be "staggering."
But Schiff isn't the only one to draw the cryptocurrency market's bull run with the dot-com bubble.
Late Charlie Munger, a legendary investor and partner to Warren Buffett, compared the cryptocurrency market to the dot-com bubble of the late 1990s, calling it a "mass folly."
Price Action: At the time of writing, Bitcoin was exchanging hands at $106,567.30, up 1.37% in the last 24 hours, according to data from Benzinga Pro.
Image via Flickr/ Gage Skidmore
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