In a recent social media post, gold enthusiast Peter Schiff criticized Bitcoin, labeling it as a "failure" due to its exorbitant fees. Schiff highlighted the significant increase in the cost of a single Bitcoin transaction, reaching a staggering $128, which he believes hinders the cryptocurrency from effectively operating as a digital currency.

According to Schiff, the high costs associated with using Bitcoin for transactions make it impractical for the majority of users, ultimately leading to its failure as a functional currency. Recent data revealed that Bitcoin amassed a remarkable $78.3 million in fees on April 20, surpassing Ethereum's fee earnings. Following the halving event, miners achieved unprecedented revenues exceeding $100 million.

The surge in fees was attributed to the introduction of the Runes protocol, enabling the creation of fungible tokens on the Bitcoin network. Despite this development, the sustainability of the excitement surrounding Runes remains uncertain. Statistics from YCharts indicated a decrease in the average Bitcoin fee to $34 on April 21, although still relatively high. This reduction in fees may impact miners' profitability in the long run post-halving.

Contrary to the common belief that Bitcoin is a superior alternative to gold for transactions, Schiff pointed out that Bitcoin's transaction processing time has now extended to over an hour, rendering it impractical as a currency. Interestingly, Schiff proposed that gold could potentially outperform Bitcoin as a currency if tokenized on a blockchain, emphasizing the swift transaction times and minimal costs associated with such a system. He expressed support for blockchain technology, suggesting that gold could function more efficiently on a blockchain compared to Bitcoin.