Peter Schiff: "Bitcoin is not a currency"
I sometimes listen on Peter Schiff's podcast to get a grasp of the manipulated market. It can be pretty fun and interesting to listen to him. He has some strong opinions on Bitcoin, though, and in his latest podcast he goes all in.
What he says is that bitcoin is not money or a currency, it is an asset. People does not use Bitcoin as money, they trade it for currency when they want to buy something.
I think he has a point, for now, but that may change if buissnesses start charging in bitcoins, paying employees in Bitcoin and doing accounting in bitcoin.
Beeing an asset still does not mean that it has no value. Everything with limited supply and a demand has a value, if something is not easy to get and people want it they will pay to get it. It's basically just a believe in the system.
He think that Bitcoin will collapse, the profits will equal the losses. And, well, it might do.
I sometimes ask myself, what value does this have in 100 years. For a $100 bill the answer is probably 0. A house, if maintained a has a value. For gold, it is still gold and probably have a value. For Bitcoin, I'm pretty sure it is 0 too.
The value in 5 years? That's a totally different question.
I love the fact that he can rubbish btc without seeing the obvious parallels with gold. By his definition, gold is an asset not a currency as you change gold into fiat to pay bills etc. Bitcoin has nothing backing it in the same way as gold. Gold has just been doing it for longer!!
Yes, true.
The backing for gold he says is the investments in mining for gold, and those investments in machines, drills etc creates value. With the same reasoning Bitcoin is backed by investments in computer power and electricity, which also should create value.
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