Peter Schiff Challenges Bitcoin’s 21 Million Supply Cap as Market Hits $118K

• Peter Schiff claims Bitcoin’s 21 million supply cap creates false scarcity, and the number could be 21 billion without changing fundamentals.

• The crypto community rejected his argument and compared it to cutting pizza into different slice sizes while keeping the same total amount.

• Despite Schiff’s criticism of corporate adoption strategies, over 100 public companies now hold Bitcoin on their balance sheets.

Bitcoin critic Peter Schiff has ignited heated discussions across social media by questioning the fundamental scarcity principle behind Bitcoin’s 21 million supply cap. The economist’s controversial statements came as Bitcoin reached a new all-time high of $118,000, prompting widespread debate about the cryptocurrency’s perceived value proposition.

Schiff argued that Bitcoin’s scarcity exists primarily in public perception rather than objective reality. He suggested that if Bitcoin’s total supply were 21 billion instead of 21 million, the underlying value would remain unchanged since the satoshi count would stay identical through unit adjustments.

“The supply of Bitcoin is meaningless, it’s the satoshi supply that counts,” Schiff stated in his X post, which garnered over 146,000 views. He claimed that “21 million creates an illusion of scarcity that would be lost if the number was 21 billion.”

Community Pushback Against Schiff’s Bitcoin Analysis

The crypto community responded swiftly to Schiff’s assertions with mathematical counterarguments and analogies. Users emphasized that Bitcoin’s scarcity stems from its fixed supply limit rather than the numerical denomination.

One prominent response compared the situation to “cutting a pizza into 8 or 16 slices,” noting that the total amount remains constant regardless of division. Another user pointed out, “If BTC had a 21 billion supply but each coin = 100K sats, nothing changes fundamentally.”

Several community members suggested Schiff’s posts serve as engagement farming tactics, with one user claiming he has “4x his following since becoming an ‘antibitcoiner.'” Critics noted potential contradictions in his stance, referencing his previous Bitcoin-related statements.

Institutional Adoption Continues Despite Criticism

Bitcoin adoption by major corporations has accelerated significantly, with over 100 public companies holding Bitcoin on their balance sheets. According to BitcoinTreasuries data, these entities collectively hold more than 852,000 BTC.

Investment giants, including BlackRock and Michael Saylor’s Strategy, have accumulated over 1.3 million Bitcoins combined, representing approximately 6% of the total supply that will ever exist. This institutional interest has driven substantial price momentum despite ongoing skepticism from traditional finance critics.

Schiff has consistently opposed corporate Bitcoin strategies, describing companies as “fools looking to take advantage of other fools.” He has also criticized the growing political support for Bitcoin, warning that dollar sales to purchase BTC could pose economic risks.

The economist maintains his preference for precious metals, noting that “gold has taken a temporary pause” while “silver is beating Bitcoin.” Despite his criticisms, Bitcoin’s institutional adoption continues expanding as more companies integrate cryptocurrency into their treasury strategies.