After Calling Bitcoin Inferior, Peter Schiff, States the Govt Can Turn Bitcoin’s Lights Off Easier than Gold
- Peter Schiff says that it would be easier for government to shut down Bitcoin over gold.
- Schiff and Bitcoin author Saifedean Ammous join up on debate between the two assets.
The world of traditional finance has long held the belief that their currency is the one true source of wealth, completely centralized in the US Government. Peter Schiff, who is know as a gold investor, recently made comments that he sees gold coming out victorious over Bitcoin in the long run.
His reasoning was less about the inherent value that either of these assets hold, and more about how easy it would be for the government to shut it down, according to a recent article by Bitcoinist.
Schiff participated in a decade with Saifedean Ammous, who is the author of a book called The Bitcoin Standard. The debate occurred on trader Tone Vays’ YouTube channel two days ago, which was highly anticipated by the rest of the crypto community. During the discussion, Ammous spent his time working to contradict Schiff’s position that gold will reign superior as an asset.
Ammous argued that a whole money transfer system could not be created on top of gold, because the government took gold from the citizens in the 1930s, and they still remain in control of most gold to this day. The market can be easy influenced by the sales and lending of the government. However, Schiff did not back down, pushing harder in favor of the precious metal.
While gold lacks security and utility, Schiff believes that it still has the capability to create secure transactions. Explaining, he said that it is possible to transfer the rights to gold from himself to someone else instantly. There is no fee associated with this transfer, because the gold can remain in the same safe it was originally placed in. The only difference is the person with permission to access it. Considering that electricity is a necessity of the Bitcoin network, Schiff added that crypto basically has “no value.”
With the two differing views, Schiff found himself with a lot of support from both traditional finance and cryptocurrency. CEO and founder of Digital Currency Group Barry Silbert even praised him for the continued loyalty that Schiff holds to keep the integrity gold, even if he is wrong.
After the interview, Silver tweeted that he was amazed to find that there were “so few public advocates” to this multi-trillion-dollar asset class.
Huge props to @PeterSchiff for being the only gold bug willing to publicly defend gold and engage in the bitcoin vs gold debate
Amazing to me that a $8 trillion asset class has so few public advocates. The bench of informed bitcoin proponents is super deep and growing#DropGold
— Barry Silbert (@barrysilbert) May 22, 2019
Still, not everyone held the same opinion. It is fairly easy to find a particular chart on social media right now, which details the ratio of gold to Bitcoin.
— Sir Sat Stackin' Santa (@SirSatoshi) May 22, 2019
Still, even for the staunch supporter of Bitcoin, the assumption that digital gold will take over the real thing is more of a theory than a realistic certainty. Bitcoin is relatively resistant to government takeover, even if it was considered illegal by lawmakers around the world. However, there is still a chance of increased centralization.
Tweeting about his comments, Ammous explained that Bitcoin would be able to “support thousands of final clearance banks,” which far surpasses what any gold system or USD system has been able to do in the last 10 years.
Therefore, he believes that there is an increased chance of being able to battle against centralization, though there’s no guarantee.
My point is that even in the worst case scenario bitcoin can support thousands of final clearance banks, which is thousands more than the single-node USD or gold systems of the last century. It thus has a much better chance at resisting centralization. I can't promise it will!
— Saifedean Ammous (@saifedean) May 21, 2019