Peter Schiff Triumphs in the Discussion Over Whether Gold or Bitcoin is a Greater Store of Value

During the debate, Schiff stated that “in truth, Bitcoin and gold have virtually nothing in common,” claiming that gold has value owing to its metallic characteristics, whereas Bitcoin is nothing more than a “giant pump and dump.”

Peter Schiff, a proponent of gold and a crypto skeptic, has been declared the winner of a discussion over whether gold is a better store of value than Bitcoin.

In a debate presented by Intelligence Squared on August 25, Schiff was pitted against Anthony Scaramucci, the founder of Skybridge and a former politician.

A poll conducted prior to the start of the gold vs. Bitcoin discussion found that 38% of the internet audience supported gold, 26% supported Bitcoin, and 35% were undecided. By the conclusion, Schiff had managed to sway a considerable proportion in favor of gold, with final figures of 51 percent for gold, 32 percent for BTC, and 17 percent uncertain.

Scaramucci began by claiming that the value of Bitcoin is derived from its network, which allows for peer-to-peer transactions without the use of a third party. He also claimed that BTC has a competitive advantage over gold due to its scarcity and digital properties:

“I think this cryptocurrency revolution and Bitcoin specifically, because of its scarcity, is going to transcend gold. It’s more portable, it’s impregnable in terms of the transaction over the blockchain […] and it’s being adopted quite rapidly.”

“A result of which the prices are going to go a lot higher,” he added.

In response, Schiff said that “in reality, Bitcoin and gold have absolutely nothing in common” as he argued that Bitcoin is marketed like gold, but doesn’t possess any of the “metallic properties,“ that gives gold value.

“Part of the marketing fraud is to try to portray Bitcoin as gold, gold 2.0, digital gold. I mean Bitcoin itself is always displayed as a coin, and the color is gold, and you put like a “B” on it. But it’s not a coin, it’s just a digital string of numbers, it doesn’t have any substance,” he said.

He argued that there is a difference between “price and value”, with gold’s value being determined by real-world use cases, while BTC doesn’t have tangible backing in the real world:

“In 100 years, in a 1,000 years, the gold that I’m storing today can be melted down and used in electronics or used in jewelry, or for whatever new uses have been invented that don’t even exist today.”

Throughout the debate, the crypto skeptic described BTC as a “Ponzi scheme,” a “giant pump and dump” and “tulip mania.” Schiff is also unfazed by the rising price of the asset, as he believes that late adopters of BTC are being gradually dumped on by whales who got in early.

“In my mind it is a giant pump and dump, where the guys that got in relatively early […] are constantly trying to pump up the market in order to generate a lot of enthusiasm and momentum and FOMO so that they can sell out gradually into this market that they are creating,” he said.

Scaramucci reiterated that the value of BTC is tied to its global network, and that digitization in the next stage of humanity as “software is eating the world.” Schiff stated he would only change his mind if BTC was backed by gold, and was actually used as a currency as opposed to being traded primarily.

In celebration of his win, Schiff called out BTC proponent and MicroStrategy CEO Michael Saylor in jest:

“I just gotta say one thing. Michael Saylor stop ducking me, I know you’re out there.”

Source: CoinTelegraph

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments