Legendary Peter Brandt is pessimistic about altcoins, stating that the Bitcoin cycle has not yet ended.

Peter Brandt, a veteran trader in the financial markets, has issued one of the most pessimistic and comprehensive warnings to date about the future of altcoins. According to him, altcoins are becoming a “marginal casualty” in the early stages of a global monetary system reorganization.

Brandt believes that the process of erosion of confidence in fiat currencies issued by governments has begun and will continue. However, not all digital assets will benefit from this shift. On the contrary, he warns that most altcoins are at risk of being phased out as capital flows toward truly safe-haven assets.

“The destruction of fiat money has started. Gold will return to its position as the most reliable store of value in the world. USD-denominated assets will depreciate relative to tangible commodities — and this may or may not include Bitcoin. Altcoins will become even more worthless than USD,” Brandt states.

The Issue of “Digital Gold”

From another perspective, Brandt admits that Bitcoin has actually surpassed traditional gold in its role as a store of value. However, he also points out a core weakness of the “digital gold” concept: in theory, it can be copied and replaced by a “digital gold” version that is technologically improved.

This argument shows Brandt’s skepticism about the long-term competitive advantage of digital assets that lack absolute uniqueness, especially in a continuously evolving technological landscape.

An Unprecedented Phenomenon

Despite his skepticism about altcoins, Brandt emphasizes that Bitcoin is a market phenomenon unlike any other in history. Over its approximately 15-year existence, he states, no other asset has moved similarly and there may never be a second case like it.

Brandt cites Bitcoin’s repeating cycle, characterized by explosive growth phases followed by deep declines. Over the past one and a half decades, Bitcoin has experienced five major “parabolic increases” when viewed on a logarithmic scale, each ending with a correction of at least 80% from the peak.

In Brandt’s view, this pattern is not yet over. The current cycle, although having passed a strong growth phase, has not yet completed its decline, implying that the market may face significant volatility in the near future.