Gold Supporter Peter Schiff Faces Heat From Bitcoin Proponents After BTC Breaches $11,000 USD
Bitcoin is just a decade old, but in this short period of time, it is being seen as a digital equivalent of gold in terms of a store of value and better in many other aspects. Bitcoin's comparison with gold often leads to friction between the two sides where Gold proponents do acknowledge the rise of Bitcoin but say it will never be as precious and usable as gold
Bitcoin recently broke past $11,000 mark, and this gave many Bitcoin proponents to call out Gold proponents who called Bitcoin dead in 2018 due to the longest crypto winter. Among these Gold bugs who faced the ire of Bitcoin enthusiasts, Peter Schiff topped the list. Peter is a big-time Gold proponent who has bashed cryptocurrencies on several occasions in the past.
Even this Saturday Peter wrote that no matter how high the price of Bitcoin touches unless one sells it. He wrote,
“It doesn't matter how high the price of Bitcoin rises unless you sell. Every buyer must eventually sell to realize any benefit from the rise But therein lies the problem. Once hodlers decide to cash out, the price collapses, wiping out paper gains before they can be realized!”
These words did not really go down well with many crypto bulls and Max Keiser was leading the backlash against these Bitcoin naysayers who is a former wall street investor himself. Keiser responded to Peter by saying,
“Where’s the gratitude, Peter? Bitcoin has given Gold a hard money halo; igniting interest in hard money again, driving the price of Gold higher,”
Keiser is probably referring to the sudden rapid rise in the value of Gold in accordance with the Bitcoin rise. Ironically Peter has often bashed cryptocurrencies in interviews for which he has accepted crypto payments. Keiser wrote further,
“The (bitcoin) community now has a greater understanding of money and monetary history than the Gold community. This ‘flippining’ is relatively recent, and it explains why Gold Bugs are struggling right now.”
Peter faced further backlash for claiming that Bitcoin has no intrinsic value and that is what makes Gold superior to Bitcoin. He said,
“The only demand for Bitcoin comes from speculators,”
He got a response from analyst Vijay Boayapati, who said,
“The vast majority of gold's price is monetary premium, just like Bitcoin. Industrial use does not protect that premium in any way. The premium is based on suitability as a store of value where Bitcoin excels over even gold.”
Boyapati also presented a comparison of Gold, Bitcoin, and Silver to back his statement.
The cryptocurrency space has been facing this kind of ignorance ever since its inception in 2009, but over the time it has turned many of those naysayers into followers, be it JP Morgan or central banks and commercial banks around the globe. The traditional wall street investors did not have much confidence in the crypto space either, but now they have a major stake in the crypto market as well.
With time even Gold bus would realize the value and potential in the technology which even though not backed by any physical entity relies on mathematics and science.