Peter Schiff Wins the Gold vs. Bitcoin Debate on Storage of Value
Gold proponent and cryptocurrency skeptic Peter Schiff has won a debate on whether gold is a superior store of value to bitcoin.
Schiff and Skybridge founder and former politician Anthony Scaramucci traded blows in a debate hosted by Intelligence Squared on Aug. 25.
Before the gold vs. bitcoin debate began, a poll showed that 38% of the online audience supported gold, 26% supported bitcoin, and 35% said they were unsure. In the end, Schiff managed to pull a significant number of people toward supporting the precious metal, with the final results showing 51% in favor of gold, 32% in favor of bitcoin, and 17% unsure.
Scaramucci began by stating that BTC’s value comes from its network, which allows for peer-to-peer transactions without a third party. He also said that BTC has an advantage over gold due to its scarcity and digital nature.
“I think this cryptocurrency revolution, especially Bitcoin, will overtake gold because of its scarcity. It’s more portable, it’s indestructible in terms of blockchain transactions …… and it’s being adopted very quickly.”
“The result is that the price will rise dramatically,” he added.
Schiff responded that “in reality, bitcoin and gold have absolutely nothing in common,” arguing that bitcoin is marketed like gold, but does not have any of the “metal properties” that give gold its value.
Part of the marketing fraud is trying to portray bitcoin as gold, as gold 2.0, as digital gold,” he said. I mean, bitcoin itself is always shown as a coin, it’s gold in color with a “B” on it. But it’s not a coin, it’s just a string of numbers, it doesn’t have any substance.”
He believes there is a difference between “price and value,” and that the value of gold is determined by real-world use cases, while BTC has no real-world backing.
“In 100, 1000 years, the gold I have stored today could be melted down and used for electronics or jewelry or any newly invented use that doesn’t exist today.”
Throughout the debate, the cryptocurrency skeptic described Bitcoin as a “Ponzi scheme,” a “giant pull-up shipping scam” and a “tulip mania.” Schiff isn’t worried about the rise in Bitcoin’s price either, as he believes that late adopters of BTC are gradually being dumped by the whales of early entrants.
Scaramucci and I attended the Bitcoin vs. Gold debate hosted by Intelligence Squared. Since you bitcoin supporters forgot to rig the vote, I really won this time. Check it out and judge for yourself.
— Peter Schiff (@PeterSchiff) August 26, 2021
He said, “In my opinion, it’s a huge pull-up-and-go scam where people who got in relatively early keep trying to pull the market up to generate a lot of enthusiasm, momentum and FOMO (fear of missing out on sentiment) so they can gradually sell out and get into the market they are creating.”
Scaramucci reiterated that the value of Bitcoin is tied to its global network, and that the next phase of digitization in humanity will be when “software is eating the world.” Schiff said he will only change his mind if Bitcoin is backed by gold and is actually used as a currency rather than primarily for trading. The idea.
In celebrating his victory, Schiff jokingly called out BTC supporter and MicroStrategy CEO Michael Saylor.
“I just want to say one thing. michael saylor don’t hide from me, I know you’re out there.”
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