- Bitcoin is not really scarce because there’s an infinite supply of other cryptocurrencies – Peter Schiff
- Bitcoin has more in common with fiat than gold
Long term gold proponent Peter Schiff is yet trying to school the crypto community over Bitcoin’s scarcity or the lack of it.
The world’s top cryptocurrency, as we all know has a fixed, hard supply set at 21 million which is deflationary in nature, as every four years an event called Bitcoin halving occurs that puts a restraint on its supply by reducing the block rewards in half.
Not to mention that it is portable, verifiable, and unconfiscatable, that makes it far more precious than the yellow metal, gold.
However, gold proponents would never agree to that and one such supporter is Peter Schiff, Chairman of SchiffGold who says, the flagship cryptocurrency has more in common with fiat currencies than gold and that’s why it is a more of a bet against gold than fiat currencies.
Is Bitcoin the same as Ethereum, XRP, Bitcoin Cash or more than two thousand other cryptocurrencies present in the market?
Well, the answer is a clear no, not only because different cryptocurrency has different use cases and the market they are targeting, but also because the level of network growth, community support, and institutional interest this cryptocurrency is seeing is unparalleled.
And we also know, the hard forks of Bitcoin are nothing more than cheaper alternatives to the original king of cryptocurrency, the majority of which have already lost most of their value or barely surviving.
However, for Schiff, this isn’t the case as he says there is an unlimited supply of those other cryptocurrencies that can be created out of thin air.
Well, Schiff forgets in that case, the yellow metal isn’t either that scarce as there are other metals like silver available in the market.
“Gold is not really scarce, as there is an infinite supply of other metals,” as retorted by Dan Hedl.
Schiff further shone a light on his understanding of Bitcoin as he tries to explain,
“The network is not Bitcoin. Plus the network is very expensive to maintain, and without it Bitcoin can't be exchanged. If demand for Bitcoin falls, the network will collapse.”
And just to put it here,
It’s not all, recently, Schiff has taken to Twitter where he weighs in the upcoming release of Facebook’s new cryptocurrency called GlobalCoin claiming it won't go well for Bitcoin.
If he had said this in context with Ripple, it would have been possible to take him seriously given the fact that Ripple’s XRP and Facebook’s GlobalCoin have at least overlapping market.
According to industry experts, the opposite is true as the involvement of giants like Facebook is good for Bitcoin as an organization with billion of users using blockchain and cryptocurrency gives validation to the technology.
This also has been as industry experts says, one of the reasons Bitcoin is rallying hard that is hitting the level seen over 1 year before and a new 2019 high at $9,391.
beg-single-coin-widget coin='bitcoin' graph='false' coin_data='true' title='Bitcoin (BTC) Live Price']