bitcoin (BTC) community members took to social media to respond to the claims by Peter Zeihan, one of the most recent guests on the Joe Rogan Experience (JRE) podcast.
In a recent episode of JRE, Zeihan, an American author and geopolitical analyst reclaimed that cryptocurrencies were always a "hot garbage fire" and that Bitcoin has no intrinsic value. The analyst claimed that the number one digital asset by market capitalization is now priced "more appropriately."
Furthermore, Zeihan argued that Bitcoin, which is now trading at around $17,000 at time of writing it will drop another $17,000, saying its appropriate price is well into the negative. He added:
“The craziest thing about Bitcoin is that there will never be more than X units of Bitcoin. By default, it means that it cannot be used for trading.
Zeihan also argued that "the general idea of economic activity is that there is expansion, which means that more currency is needed to lubricate and manage that expansion." The analyst argued that if the supply of a currency is blocked, there will be monetary inflation and this could “destroy an economic model”.
Due to Zeihan's comments, Bitcoin users offered their responses almost immediately and offered counterarguments to Zeihan's claims. Some community members instantly pointed that the analyst has not read or understood the Bitcoin whitepaper.
Swan Bitcoin executive Alex Stanczyk also criticized the JRE guest and said that his comments are ignorant. “Almost everything this 'expert' said in this short span of time is complete nonsense,” Stanczyk wrote.
Jeff Ross, the founder of hedge fund Vailshire Capital, also pointed out the flaws in Zeihan's arguments. He tweeted:
Three critical errors in @PeterZeihanIt is the logic that I see:
1. To be valid, money must be created and controlled by a central authority. ❌
2. Scarcity of money limits human productivity and economic expansion. ❌
3. #Bitcoin Y #crypto they are interchangeable. ❌DC: @joerogan https://t.co/gA5szpZe7L
—Dr Jeff Ross (@VailshireCap) January 8, 2023
Meanwhile, a community member proudly defended Bitcoin and argued that some of its characteristics give it intrinsic value. This includes scarcity, being deflationary, the fact that it can be divided into smaller amounts called "Satoshis" and decentralization.
Related: Bitcoin Mining Stocks Rise With Broader Market As Traders See Less Aggressive Federal Reserve
While Rogan did not discuss Zeihan's claims in the episode, the popular podcaster previously expressed positive sentiments towards Bitcoin. On May 4, Rogan said that BTC is similar to the first Internet and that the government did not see it coming. The podcaster also highlighted that it is a "viable form of currency" and that it can be used to buy things.
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