Peter Schiff said on November 29 that bitcoin (BTC) as money and as a store of value fails because there are no utilities and intrinsic value, the measure of the true value of an active person. “Bitcoin is not a store of valuePeter, a gold supporter and bitcoin skeptic, said during a discussion on Twitter examining the various merits and demerits of gold and BTC as money and as a hedge against the monetary inflation virus.
Shock the Schiffs
In the debate, Peter confronted his son Spencer pro-bitcoin, as the two often do on the social media site. The protracted confrontation between the Schiffs was caused by the very popular future and the position of forex trader Peter Brandt on a gold medal from South Africa.
Brandt showed his money on the coin, which he bought 40 years ago. Since then, its Krugerrand gold medalThere was a big increase of 3% per year“. I thank Peter Schiff for theoriginal business advice“. Brandt said: “We do not call it bullion for anything.»
But Michael Saylor, CEO of the American technology company Micr strategyhimself a big supporter of bitcoin, immediately hit back at the post.
“The idea of gold as silver does not keep up with a rigorous inspection of the first principlesarsa Saylor. “It’s a myth told by commissioned sales professionals who intend to mark industrial metals.»
Peter was waiting to pour cold water on Saylor’s claims. He explained that “gold has been silver for thousands of years and bitcoin has yet to become money for even a year. Bitcoin is a digital token used for speculative trading.»
“Gold is not the best currency»
His own son, Spencer, argued that the relative longevity of gold was not the best currency: he argued that the industrial uses of gold, as well as its centralized preservation, disqualified the yellow metal from being the currency of choice in the 21st century.
Spencer described his position:
“In 1971, gold was the preferred currency. A few years later, that changed. Its industrial uses only give it its non-monetary value. Its monetary bounty comes from its monetary characteristics, which have nothing to do with how gold can be used in your iPhone.. »
Praising that her son suffered “brainwasted by cult bitcoinPeter could not be depressed:Utility as a commodity is a key monetary property. Without it, none of the other attributes apply. That’s why bitcoin fails as money. »
In response, Spencer told his father that “completely wrongand apologized for it. He argued that “money should have no industrial useand that bitcoin fits the bill. The best cryptocurrency is already in use as value storehe pointed out.
Spencer said that bitcoin has been working as money for over 10 years, and Peter replied that his son lives in “fantasy worldand not really. Peter pointed out that bitcoin “it is not a unit of account“as”you cannot get fixed prices in bitcoin“.
For Spencer, the mass adoption of bitcoin qualifies as everyday money. Bitcoin has always shared opinions. In February, US Treasury Secretary Janet Yellen criticized the digital asset as “an extremely inefficient way of negotiating“.
However, some analysts believe that bitcoin is starting to become a store of value similar to gold. With its correlation with gold rising sharply over the past year, analysts say BTC will eventually transition from a dangerous speculative asset to the crypto market version of the metal.
As a digital gold, BTC appeals to the cashless internet economy largely because of its characteristics, including all-day price transparency and lack of limits, breaks or restrictions and third-party monitoring.
“It has no value to store, only market price. You cannot store the prize. Before anything can become a currency, it must first have a fundamental valueThis is the position that Peter Schiff defends against his son regarding bitcoin. The international community seems to be leaning towards Spencer Schiff, especially after the SEC Chairman’s recognition of bitcoin as a store of value, but only time will tell who was wiser, father or son.
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