Bitcoin

Peter Schiff Unwittingly Calls Bitcoin Digital Gold

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The battle for Bitcoin’s designation continues to rage on. Many feel that the coin should stick to its original purpose and become a usable currency, while others are happy with the way things seem to be going currently where it acts as a digital store of value. 

The idea that Bitcoin is like a new-age digital gold is one that has been growing strongly as the coin emerged into the mainstream market place. Based on Bitcoin’s astronomical price rise through 2017, many individuals invested in Bitcoin because of its good performance. 

In fact, over the last decade, Bitcoin has been the best performing asset without competition. This has helped the cryptocurrency become more prized, as well as legitimized and normalised as the metaphorical Wall Street interest has been growing with the asset being a store of value.

In fact, this narrative has even started permeating the mind of a major Bitcoin detractor, and well-known gold bug, Peter Schiff. The gold investor, who has become infamous in the cryptocurrency space, has recently tweeted about Bitcoin unwittingly admitting its likeness to gold. 

Not money

Schiff’s issue with Bitcoin appears to be based around the fact that it is not a workable or usable currency. It is of course designed to be that, but its evolution has taken it away from that narrative. He said in his tweet

“I concede that anyone who bought #Bitcoin 10 years ago and sells it today will make a lot of money. But I never said the price of Bitcoin could not rise. I only said that Bitcoin would never succeed as money. Nothing that has happened over the past 10 years has proven me wrong!”

Indeed, in the last 10 years, Bitcoin has diverged away from being a usable currency to the point where forks of the coin – Bitcoin Cash – have emerged with the intention of trying to move towards being a usable currency. 

But, as Schiff admits, Bitcoin, if invested into 10 years ago, would have made anyone incredibly rich. The same thing can be said about gold, the primary asset of Schiff’s expertise. Gold is an asset well known for its slow and incremental gains over long periods of time whereas Bitcoin has the same traits, but with more volatility and speed. 

Better than gold?

One avenue that Schiff has not ventured down is debating if gold or Bitcoin is the better asset, having now essentially admitted it works like a digital gold. Some arguments int he cryptocurrency space are painting Bitocin as even better than gold, due to its digital nature. 

Bitcoin is a leader in the digital age because it can be bought, spent, sent, stored and moved digitally without the person ever having to get their hands on anything physical. Thus, to have the scarcity factors of gold – if not better – and a digital channel, makes Bitcoin superior.

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

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