FREEDOM FEST 2017 - Bitcoin Vs. Gold: Peter Schiff Vs. Max Keiser: Who Is Right?

 
Freedom Fest 2017 conference in Las Vegas with host Max Keiser.  During the report, Keiser talks with the economist and long time ‘gold  bug’ Peter Schiff about the decentralized currency bitcoin. Schiff says  he understands that people want an alternative to the current monetary  system but believes an alternative to fiat will not be cryptocurrency or  what he calls “digital fiat.” Peter Schiff is a well-known economist,  precious metals proponent, and a person who doesn’t like  cryptocurrencies at all. Max Keiser discussed the global economy, Trump,  and the Federal Reserve with Schiff at the Freedom Fest event held in  Las Vegas last month. Then the two further delve into a conversation  about the rise of bitcoin and Schiff gives great detail into why he  doesn’t favor this technology. Schiff believes bitcoin and other  cryptocurrencies are merely representations of digital fiat.

“Our  monetary system is based on faith because there’s nothing real behind  dollars or euros, and it’s just based on the fact that you believe  people are going to want it,” explains Schiff. “Other than that, the  other thing currencies have is that governments accept it or require it  for payment of taxes. So if you live in America, the IRS wants your  taxes, and you better send them dollars. That’s what they accept there,  and there is a natural demand for dollars to stay out of jail.      [Bitcoin] is the same concept. It’s being created but there is no real  value in bitcoin it’s all based on faith. If somebody doesn’t want your  bitcoin there’s nothing you can do with it right?

People Hold Bitcoin as a Speculative Asset
Gold Bug Peter Schiff Says 'Cryptocurrency Market Signals Are Wrong'
Max Keiser.

Of  course Max Keiser a long time cryptocurrency advocate disagrees with  Schiff and says that a lot of millennials believe bitcoin is a form of  ‘digital gold.’ Keiser tells Schiff as a business person he should be on  board with this trend or otherwise he’s ignoring an entire market.

“They  are wrong,” Schiff tells Keiser. “The people that are using it  [Bitcoin] are using it as a speculative asset. I talked to a guy today  who showed me his cryptocurrency portfolio, and he had like $50,000 — I  asked him have you ever spent any? He said “no,” and he’s never used it  in commerce — He’s speculating on it, and he owns it as an ‘asset.’”

“Look  [Bitcoin] is never going to be used as money,” Schiff tells Keiser.  “People can buy it, and the price can go up until the price collapses,  and people don’t want it anymore.”

Schiff doesn’t believe in the  market signals Keiser describes. The economist explains that the market  was giving signals during the dotcom bubble and other types of stocks.  However, Keiser says that even though the dotcom bubble burst, Google  and Amazon still rule the world.

“Amazon is one, there are  hundreds that went to zero,” says Schiff. “So how do you know? What if  somebody comes up with a digital currency a year or two from now that is  so much better than bitcoin? It’s everything bitcoin does, better,  faster, and cheaper. Everyone then wants that new one, and nobody wants  bitcoin. It’s worthless.

source: Elite NWO Agenda