Long-time Bitcoin skeptic Peter Schiff recently stated that Tether (USDT) will eventually surpass not only Ethereum but also Bitcoin itself in market capitalization. He emphasized that the only question is not if, but how long this process will take.
As the world’s largest USD-pegged stablecoin, USDT currently holds a market cap of around $110 billion, while Bitcoin dominates with over $1.1 trillion—a gap that remains vast. However, Schiff pointed to the rapidly expanding use of stablecoins in payments, transaction settlement, and digital dollar circulation, which he believes is driving demand growth for USDT at a pace already outpacing volatile assets like Bitcoin.
He reiterated his long-held view that Bitcoin lacks intrinsic value and relies solely on market speculation, whereas stablecoins serve concrete functions in real-world finance—including cross-border payments, risk-off settlement, and liquidity provision in decentralized finance (DeFi). This functional divergence, he argued, will be the key driver for a reversal in the market cap ranking.
Stablecoin Utility vs. Bitcoin's Value Debate
A prominent gold advocate, Schiff has consistently criticized Bitcoin as a speculative bubble with no fundamental backing. His bullish take on stablecoins follows the same logic: assets with predictable value and clear use cases in daily economic transactions hold a lasting advantage over highly volatile cryptocurrencies.
Short-Term Support for Bitcoin
Despite his bearish long-term outlook, Schiff acknowledged that Bitcoin found firm short-term support near the $61,000 level after a sharp market downturn. BTC rebounded over $2,000 from its recent lows, indicating buying interest at that zone. He noted that such technical support could prevent further declines in the immediate term, though it does not alter his fundamental skepticism. The interplay of short-term buying and long-term doubts reflects the current complexity of market forces.