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Peter Schiff says that for bitcoin to become money, it will first have to have an underlying value.
Michael Saylor argues that “the concept of gold as cash does not stand up to rigorous inspection of the first principles. “
Some analysts say that bitcoin will eventually move from a dicy speculative asset to the gold edition of the crypto market: virtual gold.
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Peter Schiff said on Nov. 29 that bitcoin (BTC) fails as cash and as a store because it lacks application and intrinsic, a measure of the genuineness of an asset.
“Bitcoin is not a store of value,” Peter, a gold fan and bitcoin skeptic, said in a debate on Twitter that examined the various merits and disadvantages of gold and BTC as silver and as a hedge against financial inflation.
“It has no price to buy, only a market price. You can’t buy the price. Before anything can buy money, it will first have to have an underlying price,” he sneered.
In the debate, Peter confronted Spencer, his pro-bitcoin son, as the two do on the social networking site. coin.
Brandt showed his profit with the coin, which he bought 40 years ago. Since then, its Krugerrand gold coin “has grown a whopping 3% a year. “Thanking Peter Schiff for the “original business advice”. Brandt boasted, “We don’t call it bullion for nothing. “
But Michael Saylor, CEO of American-generation corporate Microstrategy, himself a big supporter of bitcoin, responded to the post.
“The concept of gold as a currency does not stand up to rigorous inspection on early principles,” Saylor said. “This is a myth told through forced sales professionals who pretend to mark a commercial metal. “
Peter was waiting to pour bloodless water on Saylor’s claims. He explained that “gold has silver for thousands of years and bitcoin has not yet been silver, not even for a year. Bitcoin is just a virtual token used for speculative trading.
His own son, Spencer, replied that gold’s relative longevity did not make it the currency: he argued that gold’s commercial uses, as well as its centralized custody, disqualified yellow steel from being the currency of choice in the twenty-first century. .
Spencer analyzed his position:
In 1971, gold was in fact the most productive cash in place. A few decades later, that has changed, its commercial uses only justify its non-financial value, its financial premium comes from its financial attributes, which have nothing to do with how gold can be used on your iPhone.
By suggesting that his son had been “brainwashed through the cult of bitcoin,” Peter can simply be suppressed: “A key financial asset is the app as a commodity. Without it, none of the other attributes matter. That’s why bitcoin fails as money. “
In his response, Spencer told his father he was “completely wrong” and apologized for it. He insisted that “money has no commercial use” and that bitcoin adapts to this bill. The most productive cryptocurrency is already being used as a store of value. Said.
Spencer said that bitcoin has been functioning as cash for more than 10 years, to which Peter replied that his son lives in a “fantasy world” and not in reality. Peter noted that bitcoin “is not a unit of account” because “you can not locate the costs set in bitcoin. “
“In rare cases where [bitcoin] is used in trading, the transaction is a barter, not a payment,” the gold bug said. He said that bitcoin has not functioned as money, but only “a virtual token that other people gather and exchange. “
For Spencer, mass adoption will qualify bitcoin as everyday money. Bitcoin has divided opinions. In February, U. S. Treasury Secretary Janet Yellen criticized the virtual asset as an “extremely inefficient way to transact. “
However, some analysts say that bitcoin is starting to become a store of gold-like value. With its correlation with gold emerging sharply over the next year, analysts say BTC will eventually move from a dicy speculative asset to the cryptocurrency market’s edition of the metal.
As virtual gold, BTC appeals to the cashless web economy largely because of its features that come with 24-hour value transparency and the absence of limits, interruptions, or third-party monitoring.
Jeffrey Gogo is a flexible monetary journalist based in Harare, Zimbabwe. For more than 17 years, he has written extensively on local and global money markets; Economic and commercial news. Passionate about climate change, Gogo’s paintings have been published in Zimbabwe’s largest newspaper, The Herald, the Thomson Reuters Foundation, Bitcoin. com and several online publications. Gogo first encountered bitcoin in 2014 and began covering the cryptocurrency markets in 2017.
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