Bitcoin is a Bubble Valued by Speculation
According to Peter Schiff, bitcoin cannot replace gold claiming that it has no value in itself, unlike gold, whose value lies in its physical properties. Gold’s physical appearance and properties make it desirable, and we can be sure that it will still be desired in years to come. Bitcoin, on the other hand, derives its value from the confidence the people have in that it will remain desirable in the future. According to Schiff, this makes bitcoin more similar to fiat currency than it is similar to gold.
Even if gold has been used to store wealth for years, it does not make it a good investment. It cannot directly generate money. Schiff may be right in his ideas about bitcoin being in a bubble, but he is wrong about gold being a good investment. Bitcoin is not linked to any hard assets making it essentially worth nothing.
Regrets for Bitcoin Deniers
Anthony Pompliano, the chief of Morgan Creek digital, cites a lack of digital technology knowledge among the bitcoin deniers. Pompliano states that for Schiff’s argument on bitcoin to be accurate, Schiff would have to be certain that bitcoin could not amount to anything. However, if bitcoin has even the slightest chance, Schiff and others would miss a golden opportunity and would end up with regrets.
Facebook’s head in cryptocurrency projects describes bitcoin as digital gold. He said that people could hold onto bitcoin as an investment just like they hold on to gold. David goes ahead and states that the volatility associated with bitcoin makes it inappropriate as a medium of exchange. Schiff replied to David’s claims saying that bitcoin’s volatility makes it impossible to use bitcoin as gold and as a medium of exchange.
Max Kaiser took it out on Schiff, stating that bitcoin is a whole new technology that should not be compared to the things he was comparing it to.