Peter Schiff Gets Back To Criticizing Bitcoin After Gold Prices Skyrocket, Which Only Helps BTC
Bitcoin vs Gold is at the center of all the debates that brews in the crypto ecosystem. This was bound to happen because of their obvious similarities. Both have obvious monetary characteristics, by virtue of gold’s history and Bitcoin’s original vision. Both have a limited supply that gradually increases over time as a result of “mining”. At some point in the future, the supply growth of each will slow down, ultimately to a fixed amount. Despite these surface-level similarities, the assertion that Bitcoin is truly a digital form of gold is worth further examination.
In fact, this debate is so divisive that the originators of the #DropGold campaign seem to be a disagreement with each other. Grayscale Investments has been running an advertising campaign using the hashtag #DropGold to try to turn investors onto the emerging asset class. The crypto asset fund is hoping to convince gold bugs to take up positions in Bitcoin since it offers many advantages over the traditional store of value asset – it’s portable, easy to store, easy to transact with, and completely uncorrelated to any other market.
Peter Schiff had earlier Tweeted:
“Looks like the #Bitcoin pumpers are right about one thing. Bitcoin is indeed a non-correlated “asset.” When investors are taking risk off, they are likely to sell Bitcoin. But when they are putting risk back on, they are just as likely to keep selling Bitcoin.”
However, at the recently held SALT conference, he backtracked and went on to praise Gold over BTC. He said:
“All FIAT [including Bitcoin] currencies ultimately collapse. The reason that gold that store of value is you can melt it down in 1000 years and use that gold and use to make a computer chip. Gold does not lose any of its property over time.”
He further added that we don’t have enough energy to power the network that would be required to run Bitcoin. However, Barry Silbert attacked the gold’s utility and demand, which has been decreasing with time. Moreover, he predicted that the same belief system would eventually shift to Bitcoin.
“We did not grow up in a gold standard A lot has to go wrong. But, it does not take a lot for Bitcoin to out-perform Gold.”
Even Alex Kruger, Fundamental and Technical Analyst at Global Markets dismissed Schiff’s narrative by saying:
“Bitcoin requires a continuous expenditure of electricity to validate every single transaction. Gold requires a continuous expenditure of fiat to pay for the bankers’ salaries to validate every single transaction.”