Peter Schiff: “USDT and USDC stablecoins will overtake bitcoin in terms of capitalization”

The economist and cryptocurrency skeptic believes that the capitalization of the two most popular stablecoins will exceed the total capitalization of bitcoin, and that financial markets do not need regulation.

Peter Schiff tweeted that the total the market capitalization of cryptocurrencies is less than $793 billion, of which 14% is accounted for by the two largest stablecoins backed by the US dollar. This is 80% of the capitalization of ether, the second largest cryptocurrency. Schiff suggested that the combined capitalization of USDT and USDC would soon exceed Bitcoin.

With a market capitalization of all #crypto tokens below $793 billion, the value of the two largest dollar-backed stablecoins represents 14% of the market. This is 80% of the value of #Etherum, the second largest. Soon the value of stablecoins will exceed the value of bitcoins.

— Peter Schiff (@PeterSchiff) November 21, 2022

A crypto skeptic took part in a discussion about increased regulation of cryptocurrencies in connection with the collapse of the FTX exchange. Schiff sees no need for government regulation, which is why he called for an end to the US central bank (the Fed) to ensure market freedom. According to the economist, competition for reputation, profit and loss is the best regulator.

“We don't need government regulation anymore. Let's do away with the Fed, government stimulus, subsidies, guarantees and bailouts. The New York Stock Exchange (NYSE) began operating in 1792. The SEC was created in 1934. We were better off without her, the economist said.

In the comments to the tweet, many users objected that this is exactly what decentralized cryptocurrencies were invented for, which are self-regulating. Other commentators have suggested that the founder of the bankrupt FTX, Sam Bankman-Fried, was simply a tool to increase oversight of cryptocurrencies.

Schiff believes that it is becoming increasingly difficult for bitcoin to compete with altcoins and even non-fungible tokens (NFTs), which is why the economist recently likened bitcoin to a shipwreck.