Schiff Takes Aim at Bitcoin Again, Says BTC is Fool’s Gold Citing 25% Drop in Price in Last 24 Hours
While crypto is considered the currency of the future it does have to go up against many heavyweights of the past and one of these is gold. Gold, for centuries, was considered a stable store of value and was a go-to asset for many investors. In the last few months, however, there has been a campaign called #dropgold which urges investors to support bitcoin rather than gold as it is a more modern and progressive store of value.
This only grew as the bitcoin value has increased in the last few weeks, bringing the month-long bear run to an end with the price reaching above $13,000 in the last few days but it has since seen a mild correction and is hovering around $11,000 Dollars as of press time. Now, Peter Schiff, the CEO of euro Pacific gold and the chairman of Schiff gold, has once again taken aim at bitcoin after previously criticizing it in the past. He has, in the past, stated that gold is superior to bitcoin and that it would be foolhardy to put any money within the token but his criticisms have not taken into account that bitcoin is only about a decade-old compared to gold being centuries-old.
Schiff took Twitter following the correction and took aim at bitcoin once again in a series of tweets.
“The idea that Bitcoin is just like gold is utter nonsense. Bitcoin is nothing like gold. It’s fool’s gold. There is not a single use case where Bitcoin can be used as a substitute for gold. Plus the gold price never falls by over 25% in less than 24 hours!”
Schiff's argument, in this case, is that gold has more value than bitcoin because of industrial use cases and its potential in the Jewellery industry but does not mention the fact that central banks around the world are not hold holding golden en mass for industrial purposes. Also, Bitcoin in itself is a digital asset and so will not find any use outside of being a means of payment or simply an investment tool. Despite all these apparent disadvantages of Bitcoin, people continue to buy into it and the number of active bitcoin addresses picks up steam every day because people are interested in it. Regardless of theories or principles about the value of an asset, the market ultimately decides whether it is valuable or not and the market has clearly stated that bitcoin is a valuable asset.
Also, should bitcoin and gold be compared side-by-side the only metric in which gold could claim superiority is it historical metric and this is fast losing relevance especially among the young people who are interested in digital currencies and do not have as much faith in the financial system of old? Also while bitcoin just like gold can be used as a store of value it is more easily transferable because it is a digital token and as such, is more convenient for certain users because it requires very little physical storage facilities.
Many of the same arguments could be made regarding gold and Fiat currency but once again the market clearly shows that individuals are favoring digital currencies more and more the new age under such many of these arguments will not hold much meaning to them.