Gold proponent Peter Schiff crowned winner in Gold versus Bitcoin debate

  • Crypto critique and gold proponent Peter Schiff has been crowned winner of a recent gold vs Bitcoin debate.
  • The economist described the asset as no more than a “Ponzi scheme” and a “giant pump and dump.”

Crypto skeptic Peter Schiff has won the debate on the best store of value between gold and Bitcoin (BTC). The debate hosted by Intelligence Squared on Aug 25 featured Schiff against SkyBridge founder and former political figure Anthony Scaramucci.

Before the contest began, the online audience was polled to determine which of the assets they favored. 38 percent chose gold, 26 percent were for BTC, and 35 percent were undecided. In the end, results tallied at 51 percent for gold, 32 percent for BTC, and 17 percent as undecided.

Starting, Scaramucci asserted that Bitcoin derived its value from its network which allows peer-to-peer transactions without a middle man.

I think this cryptocurrency revolution and Bitcoin specifically, because of its scarcity, is going to transcend gold. It’s more portable, it’s impregnable in terms of the transaction over the blockchain […] and it’s being adopted quite rapidly. A result of which the prices are going to go a lot higher,

Schiff: Bitcoin is just a digital string of numbers

On the other hand, Schiff said “in reality, Bitcoin and gold have absolutely nothing in common.” While Bitcoin is marketed like gold, it does not possess any of the “metallic properties” which give gold value.

Part of the marketing fraud is to try to portray Bitcoin as gold, gold 2.0, digital gold… But it’s not a coin, it’s just a digital string of numbers, it doesn’t have any substance,

Additionally, the economist pinpointed that “price and value” are different concepts. Gold has real-world use cases which give it value, while the cryptocurrency lacks tangible backing.

In 100 years, in a 1,000 years, the gold that I’m storing today can be melted down and used in electronics or used in jewelry, or for whatever new uses have been invented that don’t even exist today.

BTC a “giant pump and dump”

For the whole length of the debate, the gold bug described Bitcoin as a “Ponzi scheme.” The digital currency is no more than a “giant pump and dump” he said, equating it to the “tulip mania.” Schiff also has a nonchalant view of the recent price gains of the asset. Early whales are gradually dumping on late BTC adopters, he added.

In reiteration, Scaramucci said BTC’s value is tied to its global network. Digitization is coming up high and “software is eating the world.”

Schiff, however, said he would only change his opinion if BTC was backed by gold. He would also do so only if the crypto was used as a currency rather than being traded primarily.

In celebratory jest, he called out to BTC proponent and MicroStrategy CEO Michael Saylor saying,

I just gotta say one thing. Michael Saylor stop ducking me, I know you’re out there.

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