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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 wrote in hisTwitter that the total market capitalization of cryptocurrencies is less than $793 billion, and 14% of which 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 soon the total capitalization of USDT and USDC will exceed that of Bitcoin.
With the market capitalization of all #cryptotokens below $793 billion, the value of the two largest dollar-backed stable coins represents 14% of the market. That's 80% of the value of #Etherum, the 2nd largest. Soon the value of stable coins will exceed the value of #Bitcoin.
— Peter Schiff (@PeterSchiff) November 21, 2022
A cryptoskeptic took part in a discussion aboutincreased regulation of cryptocurrencies due to the collapse of the FTX exchange. Schiff sees no need for government regulation, so he called for the end of the US Federal Reserve (Fed) to ensure market freedom. According to the economist, competition for reputation, profit and loss is the best regulator.
"We no longer need a governmentregulation. 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 came into existence in 1934. We were better off without her.”
the economist argues.
In the comments to the tweet, many usersobjected that it was for this reason that decentralized cryptocurrencies were invented, which are self-regulating. Other commentators have suggested that the founder of the failing FTX, Sam Bankman-Fried, was just a tool to help increase the oversight of cryptocurrencies.
Schiff believes that bitcoin is finding it increasingly difficult to compete with altcoins and even non-fungible tokens (NFTs), which is why the economist recently compared bitcoin to a wrecked ship.