Schiff's Bitcoin Pyramid Scheme Claim Discredited by On-Chain Data

Renowned Bitcoin critic Peter Schiff called the cryptocurrency 'a pyramid scheme' and claimed that today's buyers will become tomorrow's bag holders. However, on-chain data from analytics firm Santiment reveals a different story.

The number of large Bitcoin transactions worth more than $100,000 has been declining since early February, falling to a four-month low of 1,687 in May. This is not consistent with what would be expected during a coordinated distribution event.

Only 61% of BTC's supply is profitable, compared to 75% in healthy bull markets. Recent buyers who purchased above $80,000 are underwater as a result. Bitcoin's annual inflation rate remains at 0.85%, lower than gold's and incompatible with the supply dynamics of pyramid schemes.