Famed gold investor Peter Schiff recently sparked a heated controversy on Twitter by declaring that bitcoin has no inherent value. His comments immediately sparked a torrent of reactions from the crypto community.
Experts step up to defend Bitcoin
There have been criticisms of Bitcoin aplenty since its creation in 2008 by Satoshi Nakamoto, and it’s not about to stop, at least not until detractors like Peter Schiff put down their guns.
Just yesterday, the economist entertained the gallery with a tweet incendiary. And the tireless crypto community has once again stood up to put the elusive Schiff in his place, he who seems to have sworn to only see the negative in Bitcoin.
“Here’s how Bitcoin works: we create something worthless, then artificially limit its supply. Then we pretend it has value in order to buy it. Others see the price rising and buy it too. Then we all keep it and hope the trickery continues to work“, did he declare.
Many industry experts quickly reacted to counter his arguments. Dave Weisberger of CoinRoutes explain that all forms of money work like this: people collectively agree to give them a certain value according to criteria such as scarcity, security or transferability.
“From shell to precious metal to fiat currency, history demonstrates that the value of money is fundamentally subjective.”
Unlike previous forms of currency, bitcoin has unique advantages as a decentralized, verifiable, portable and divisible digital unit of account, all properties that potentially make it the most suitable currency for the digital age.
Another crypto analyst known as PartyMarty humorously replied that he keeps his wealth in bitcoin because he “ don’t trust » to Schiff, implying that cryptocurrencies offer a better guarantee of value than fiat currencies or even gold.
Bitcoin compared favorably to gold
Each media outing by Peter Schiff, a lover of physical gold, inevitably gives rise to a deluge of reactions on the networks. Some bitcoin advocates turn his argument against gold itself.
BlackJackCrypto argues that this precious metal originally had no particular value or utility. It was only gradually, as people became aware of its properties such as its rarity, durability or brilliance, that its value emerged.
Unlike gold, whose total supply is theoretically unlimited, bitcoin’s capped supply guarantees programmed scarcity. Bitcoin could therefore ultimately overtake gold as a global store of value, concludes BlackJackCrypto.
Peter Schiff has never been shy about questioning Bitcoin. He is very skeptical that even the approval of Bitcoin ETFs by the American stock police is nothing more than a fatal error.
We are not, of course, against Peter; he is also admired in the crypto ecosystem which does not hesitate to give him the microphone. However, his ideas are not opposed to those of Bitcoiners, for example on the return to the gold standard in the United States or his criticism of central banks, which he holds responsible for all the ills of current economies.
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