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Peter Schiff discusses how the Terra Fall may effect the entire cryptocurrency market

Gold bug Peter Schiff, CEO of Euro Pacific Capital, has taken to Twitter to comment on Terra (LUNA) and its UST tied to the US dollar.

On Sunday, the UST lost its USD peg for the first time. LFG (Luna Foundation Guard) has acquired another 37,863 Bitcoins (holding a comprised 80,394 BTC back then).

However, as the price of Bitcoin fell, a significant outflow of liquidity from UST occurred, and the token lost its $1 peg.

Peter Schiff on Bitcoin and the UST

Bitcoin’s detractors LUNA cannot sell enough Bitcoin to keep UST at $1, according to Peter Schiff, because Bitcoin does not provide enough liquidity. A stablecoin supported by Bitcoin, he added, is “backed by nothing.”

According to Schiff, this is Bitcoin’s fatal defect.

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