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Bitcoin is Gold’s ‘Digital Imitation’ Says a Bit-Curious Peter Schiff

The gold bug has agreed to a head-to-head in order to defend gold’s superiority over the largest cryptocurrency.

Veteran gold bug Peter Schiff will debate the precious metal’s utility against Bitcoin (BTC) in a dedicated event with Anthony Pompliano, the latter confirmed on Twitter July 10.

Pompliano, the co-founder and partner at Morgan Creek Digital known in the industry as Pomp, said he hoped to convince Schiff that Bitcoin was a worthwhile investment.

“Peter should get a lot of credit for agreeing to this. Hopefully he walks away a Bitcoin believer,” he wrote announcing the debate, which will occur at an unspecified date on CNBC.

Schiff, well known as a Bitcoin skeptic, has made various public appearances in which he defended gold as a superior asset. Particularly notorious was a debate with ‘The Bitcoin Standard’ author, Saifedean Ammous, which aired in May. 

This week, Pomp triggered an unexpected round of charity aimed at Schiff, which appeared to trigger the formal meeting. 

After sending him a token amount of Bitcoin, other Twitter users followed suit. To date, Schiff’s wallet received 109 transactions totalling 0.208 BTC ($2,400).

In the meantime, however, he remains firmly behind gold’s future prospects. 

“As today’s action shows a rally in gold does not mean Bitcoin will rally too,” he tweeted as BTC/USD slid 10%. “In fact, one of the main reasons for Bitcoin’s prior gains was gold’s failure to rally. But if gold has finally broken out, there is no longer a reason for investors to settle for a digital imitation!”

Earlier this month, another debate pitted serial Bitcoin naysayer Nouriel Roubini against Arthur Hayes, CEO of derivatives giant BitMEX.

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Bitcoin Skeptic Schiff Receives $1,500 in the Crypto, Remains Cynical

Bitcoin Hater Now Owns The Crypto

According to Bitcoin hater Nouriel “Dr. Doom” Roubini, the cryptocurrency industry is rife with scammers, criminals, rent-seeking individuals, and so on and so forth. But if you were to take a gander at Peter Schiff’s publicly-known BTC address, you may not think this is the case. You may instead think the industry is full of altruistic technologists and early-adopters.

Over the past 18 or so hours, the prominent gold bull, who doubles as a staunch Bitcoin bear, has been a beneficiary of the crypto charity’s charitable attitude (search up the Pineapple Fund, check it out). In fact, after being urged to post his BTC address by Anthony Pompliano of Morgan Creek, Schiff’s address has racked up over $1,500 worth of the digital asset.

As of the time of writing this, the cryptocurrency critic, who has claimed that Bitcoin is just “digital fiat”, has over 0.13 BTC and a gift of $100 worth of Bitcoin.

After he received these donations, Schiff quipped, “I guess I’ll have to hodl it and go down with the ship”. This is presumably a critique of the Bitcoin’s industry incessant desire to “HODL” their cryptocurrency, even it was failing.

This odd case of Crypto Charity comes shortly after Schiff bashed Bitcoin via RT. As reported by Ethereum World News previously, the libertarian-leaning economist bashed a story about NASA eyeing an asteroid rife with precious metals, including gold.

He claims that the whole asteroid debacle is a “whole bunch of nonsense”, specifically because the surveys regarding the asteroid’s innards aren’t entirely reliable. But I mean maybe there’s no gold there, we don’t know. They don’t have any idea, they don’t know that there’s gold on that asteroid. There could be some gold there but it would cost a fortune to mine it there,” he told RT.

Schiff went on to say that this whole story is just gaining traction because of the Bitcoin community’s attempts to “create a false narrative that gold supply is not scarce, so the price of gold is going to crash.” This is presumably in reference to Grayscale’s Drop Gold campaign.

Why Spend BTC on a Hater?

While the donations to Schiff’s wallet have a good premise, some have tacitly bashed the community for “spending money on a hater”, especially because Bitcoin is one of the “hardest” monies that humanity has ever thunk up.

Wall Street Journal’s “especially formal heckler” Zack Voell wrote the following tweet, accentuating his confusion.

Stacy Herbert, an early Bitcoin adopter, venture capitalist, and contributor on RT alongside Max Keiser, explained that investors donating to Schiff should send their sats to a Bitcoin educator instead, citing the fact that she has been teaching individuals in Botswana about the cryptocurrency since 2014.

Funnily enough, Schiff’s gold website accepts Bitcoin. He purportedly converts said payments into fiat, but some have suggested that he is trying to quietly accumulate the cryptocurrency. That’s just hopeful postulation though.

Photo by Mark Kamalov on Unsplash

The post Bitcoin Skeptic Schiff Receives $1,500 in the Crypto, Remains Cynical appeared first on Ethereum World News.

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‘I Guess I’ll Have to Hodl It’ -— Peter Schiff Admits Having Bitcoin

A single back-and-forth with Anthony Pompliano resulted in Schiff receiving $1,350 from strangers in hours.

Veteran gold bug and bitcoin (BTC) skeptic, Peter Schiff, has taken delivery of $1,350 worth the cryptocurrency after the industry sent him donations on July 4.

Schiff, who is well known for warning investors not to trust bitcoin as replacement for gold, triggered the goodwill gestures after becoming the topic of a Twitter debate with Morgan Creek Digital co-founder, Anthony Pompliano.

Pompliano (also known as Pomp), highlighted the fact that Schiff in fact does own some BTC despite his negative comments. 

Schiff responded that it was a token amount given as a gift – just $100 – after which Pompliano requested his BTC address in order to double it. 

Others subsequently followed suit. At press time Friday, Schiff’s wallet contained at balance of $1,350 (0.124 BTC) after 52 transactions. 

The SchiffGold CEO thanked Pompliano and others when his balance still totalled just $130.

“I guess I’ll have to hodl it and go down with the ship,” he said.

Those comments ran in stark contrast to his infamous recent exchanges with bitcoiners and an appearance on a live debate with ‘The Bitcoin Standard’ author, Saifedean Ammous. 

“It doesn’t matter how high the price of Bitcoin rises unless you sell. Every buyer must eventually sell to realize any benefit from the rise,” he wrote about bitcoin’s current bull run last week.

Signs Schiff is in fact not entirely anti-bitcoin, meanwhile, have been evident for some time. Schiff Gold, for example, even offers it as a payment method.

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Schiff: Don’t Believe Golden Asteroid Story, Bitcoin (BTC) Inferior

Bitcoin, The Best Store of Value?

For the longest time, Bitcoin pioneers have been pushing the cryptocurrency as an alternative to the United States Dollar and other fiat monies.

While many technologists and prominent investors, even Elon Musk, have agreed to the sentiment that cryptocurrencies are the future, a world in which government-issued paper money is entirely abolished is likely still a quixotic dream.

Thus, for the short term, most proponents of Bitcoin have focused on the asset’s viability as an alternative to gold, the de-facto “store of value of store of values” for millennia. This camp recently got validation of its beliefs with news that NASA has located and targeted a gold-rich celestial object.

For those unaware, last month, British paper The Sun revealed that NASA, the world’s foremost agency on space and off-Earth expeditions, has been eyeing an asteroid known as Pysche 16. Save for the fact that it is one of the largest beings in the asteroid belt between Mars and Jupiter, it may not ring any bells. But according to new reports, the icy rock, which is a little over 200 kilometers in diameter, is filled to the brim with gold, platinum, iron, and nickel — elements essential in many Earthly devices.

It has been estimated that the celestial object has various metals valued at over $8,000 quadrillion if mined in their entirety, a sum which is obviously hard to comprehend.

The Earth’s economy, in comparison, is effectively negligible; and Gold’s total market capitalization is somewhere in the $8 trillion range. Moore tells commodities outlet Oil Price that the “four to five million ounces of gold [the ‘Titans of Gold’] bring to market every year pales in comparison to the conquests available in space.”

While NASA isn’t looking to mine it, many Bitcoin bugs quickly stuck this story to gold lovers as a way to prove that the precious metal isn’t as scarce as its price suggests.

You see, unlike the metal, which humanity has clutched to for thousands of years, Bitcoin has a mathematically-enforced supply cap, 21 million tokens.

What’s more, the asset’s supply curve can be predicted and cannot be changed, which is different than the variability in the mining of gold and other precious metals.

This is important in the eyes of many because, in the coming years, the inflation rate of Bitcoin will fall under that of gold, which is an occurrence that optimists claim will allow for BTC to surpass gold.

Gold Bug Begs to Differ

Despite this buoyant sentiment, Peter Schiff, a prominent gold bull and libertarian-leaning economist, suggests that the Bitcoin bulls are pushing. He claims that the whole asteroid debacle is a “whole bunch of nonsense”, specifically because the surveys regarding the asteroid’s innards aren’t entirely reliable. But I mean maybe there’s no gold there, we don’t know. They don’t have any idea, they don’t know that there’s gold on that asteroid. There could be some gold there but it would cost a fortune to mine it there,” he told RT.

Schiff went on to say that this whole story is just gaining traction because of the Bitcoin community’s attempts to “create a false narrative that gold supply is not scarce, so the price of gold is going to crash.” This is presumably in reference to Grayscale’s Drop Gold campaign.

Photo by Juskteez Vu on Unsplash

The post Schiff: Don’t Believe Golden Asteroid Story, Bitcoin (BTC) Inferior appeared first on Ethereum World News.

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‘Where’s the Gratitude, Peter Schiff?’ – Gold Bug Gets Grilled By Bitcoin Proponents

Max Keiser chastised the veteran gold bug after he appeared less than impressed with Bitcoin’s price performance.

Former Wall Street trader and host of the Keiser Report Max Keiser was leading the backlash against the bitcoin (BTC) naysayers this weekend as the bitcoin price passed $11,000.

Using Twitter as a platform, Keiser focused on gold enthusiasts after several claimed that despite its performance, bitcoin was still an inferior bet to the precious metal.

Among them was Peter Schiff, the veteran gold bug who has regularly trashed cryptocurrency both informally and via interviews while ironically also accepting it as payment.

“It doesn’t matter how high the price of Bitcoin rises unless you sell. Every buyer must eventually sell to realize any benefit from the rise,” he wrote Saturday.

“But therein lies the problem. Once hodlers decide to cash out, the price collapses, wiping out paper gains before they can be realized!”

Keiser did not accept his words, suggesting Schiff owed bitcoin a debt of gratitude for gold’s own gains. As Cointelegraph reported, a mixture of factors has seen gold make rapid progress in line with bitcoin in recent months.

“Where’s the gratitude, Peter? Bitcoin has given Gold a hard money halo; igniting interest in hard money again, driving the price of Gold higher,” Keiser responded.

In a further Twitter post, he added:

“The (bitcoin) community now has a greater understanding of money and monetary history than the Gold community. This ‘flippining’ is relatively recent, and it explains why Gold Bugs are struggling right now.”

Schiff faced further difficulties when he attempted to disprove bitcoin having intrinsic value. Long a favorite argument, he had touted it as a reason for gold’s superiority as far back as 2011, when he decried the idea of holding what he called “Bitcoms” because of a lack of liquidity.

Bitcoin since mushroomed in value, one commentator noted this week, while gold never broke out of its trading corridor.

“The only demand for Bitcoin comes from speculators,” Schiff further claimed this week, to which analyst Vijay Boyapati replied:

“The vast majority of gold’s price is monetary premium, just like Bitcoin. Industrial use does not protect that premium in any way. The premium is based on suitability as a store of value where Bitcoin excels over even gold.”

Boyapati included a comparison of this ‘premium’ in gold, bitcoin and silver.

Yet Schiff was not alone in his lack of faith, with Roy Sebag, founder of precious metals custodian Goldmoney, also claiming bitcoin users did not have an argument over gold.

Schiff’s debate with ‘The Bitcoin Standard’ author, Saifedean Ammous, turned heads when it aired in May, the first in a series of high-stakes encounters for bitcoin proponents.

The coming weeks will see both Warren Buffett and Nouriel Roubini – perhaps the biggest bitcoin naysayers of all – come face to face with cryptocurrency figures.

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Bitcoin Debate’s Defeated Bear: Digitized Gold ‘Only Type of Crypto That Can Succeed’

American stock broker Peter Schiff “technically lost” to ShapeShift CEO and crypto commentator Erik Voorhees in a ‘Bitcoin Debate’ at the SoHo Forum July 2.

The two financial thought leaders debated about the top cryptocurrency Bitcoin (BTC) and its underlying technology blockchain, questioning the potential for mass adoption, and comparing Bitcoin and other cryptocurrencies with other asset types such as fiat money and gold.

Voorhees, the Bitcoin bull of the debate, claimed that Bitcoin will eventually become a substitute for state-backed money, while government structures would be reorganized using blockchain technology. Voorhees argues that Bitcoin is “supremely good money” praising its provable scarcity, divisibility, durability, fungibility, portability, and decentralized nature, stating:

“Bitcoin will win because there is now competition in money, and Bitcoin is the best money currently available. Because it’s decentralized, it cannot be stopped.”

Voorhees noted that mass adoption will not happen right away or all at once, arguing Bitcoin will “simply, gradually come to be used as an occasional alternative to fiat.”

Defending Bitcoin bear position, gold investor and financial commentator Schiff argued that Bitcoin is not going to succeed in the future and work as substitute for fiat money since it is not backed by anything except the “confidence” of buyers, which is mostly driven by speculation.

Schiff spoke extensively on the value-creating characteristics of precious metal assets, namely gold, arguing that the fact that the U.S. dollar was once backed by gold is what allowed it to accumulate trust over time. Schiff argued that gold does not have to compete with any other asset, including Bitcoin, which is “replicating all of the properties of gold, except the most important one –– the metal itself.” Schiff’s argument for why gold is valuable as an element is based on the fact that it is rate and “has been valued as a commodity for thousands of years.”

Schiff, like many gold advocates on Bitcoin, expressed concern about the fact that it is not possible to find out how much Bitcoin is worth in terms gold or any other physical commodity:

“It has no real value into itself as a commodity, there is no way to relate the price of Bitcoin to the price of anything else.”

Continuing his argument, the investor claimed that the existence of multiple different cryptocurrencies was a weakness, stating “there is only one gold, there will never be another gold. Schiff noted there are, however, alternatives to Bitcoin, which, according to him, have “the exactly same properties [as Bitcoin]”:

“Now there are fifteen hundred or so cryptocurrencies that can do everything Bitcoin can do. Some of them can do it better, faster cheaper. There is no limit to the number of other digital currencies that can be created.”

Schiff concluded:

“If you want to go to the future, you have to go to the past. The future of money is gold.”

The stock broker explained that if a cryptocurrency were to be backed by gold, or “by real money,” then it would be the “only type of cryptocurrency that can succeed.”

Schiff, however, agreed with Voorhees about the weaknesses of the existing fiat monetary system, claiming that it is “not going to work.” However, the investor argued that Bitcoin “is not an improvement,” saying that it is still a “speculative asset” that people buy into in hopes of earning more fiat money.

At another debate in New York in April, U.S. venture capital investor and Bitcoin supporter Tim Draper argued that Bitcoin is “bigger than the internet,” as well as a number of other major developments in human history. During the debate, the investment mogul stated his oft-repeated prediction that five years from now, people buying coffee with fiat will be “laughed at” for not using crypto.

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Voorhees vs Schiff: Bull Meets Bear at NY Bitcoin Debate

A debate between an infamous bitcoin detractor and one of the cryptocurrency’s most well-known entrepreneurs made sparks fly in New York City Monday.

Hosted by the Soho Forum, a monthly Manhattan debate series, the event saw Erik Voorhees, the CEO of exchange service ShapeShift, argue that government-backed monies will eventually be replaced by bitcoin and blockchain innovations. The world’s largest cryptocurrency, he said, just needs gradual adoption to eventually triumph.

However, the debate was far from a one-sided showcase. There to represent the opposition, Peter Schiff provided more than a healthy dose of skepticism. Perhaps most damningly, he argued people are not currently buying into bitcoin or other cryptocurrencies to use them; they’re here to get rich, he said.

The economist said that bitcoin is primarily seen as a speculative asset. Moreover, even people who do plan to use bitcoin cannot do so easily.

Bitcoin is not, at present, a reliable store of value, he continued. Schiff pointed out that the price of a bitcoin can change hour-to-hour, which makes it difficult for people to price goods or negotiate contracts using the cryptocurrency.

“The biggest problem with bitcoin and why it can never be used as money is because [currency] has to be a reliable store of value, not just a medium of exchange,” he said.

Voorhees did not see market fluctuations as an issue.

He told the crowd:

“I remember when it was a big deal when bitcoin moved 50 percent. Today, it’s a big deal when it moves 10 percent. I think in a few years it’ll be a big deal when it moves 2-3 percent. While bitcoin is volatile today, I think this problem is self-correcting.”

Still, the event did see both provocateurs find common ground. Schiff, for example, doesn’t believe in fiat currency.

“The fiat system that we have now is not going to work,” but “replacing fiat currency with digital currency is not an improvement,” he said.

Gold or currency?

Another subject discussed was whether bitcoin can become a store of value to rival precious metals.

Touching on a familiar topic, Schiff trotted out the argument that gold’s long tenure in the market will make it hard to replace. Further, he argued it’s already surpassed its competition over the centuries.

“What are the odds that bitcoin’s the best cryptocurrency that’s ever going to be invented? … Nobody’s come up with a better gold,” Schiff remarked.

Here, Voorhees seemed to concede a bit to the argument, if on different grounds. Notably, he noted that the asset would likely be more susceptible to government bans than its more established competitor.

“Well, the government can absolutely outlaw bitcoin. More easily [than it would be to ban gold],” Voorhees said.

Elsewhere, Voorhees also conceded that bitcoin might not succeed in meeting all of the four classic functions of money.

In response to Schiff’s argument that the “crypto bubble will pop before the fiat bubble,” Voorhees acknowledged that consumers will likely ultimately play a role in deciding what kind of currency they want to exchange with, and whether it will be with cryptocurrency.

“The biggest obstacle to adoption is most individuals want governments to manage money for them. Until that changes, bitcoin will play second fiddle.”

No use?

But Voorhees did more than simply concede ground to Schiff.

In response to Schiff’s argument that the market is solely propelled by speculation, Voorhees noted that bitcoin can be used in cross-border transactions, is censorship-resistant and has a limited supply.

People transacting in bitcoin are also free of many of the restrictions seen in traditional financial institutions, including the fact that people cannot send wire transfers outside a bank’s business hours.

And an informal poll of the audience suggests this market may have won a few converts.

Soho Forum took a poll of audience sentiment before and after the debate, asking the audience if they thought bitcoin had a chance to beat government.

Notably, the yay votes rose from 40 to 55%, while the nay votes fell from 40 to 31%

Peter Schiff, Erik Voorhees and Gene Epstein image by Nikhilesh De for CoinDesk

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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GoldMoney Integrates Bitcoin despite Peter Schiff’s Bubble Comments

Peter Schiff, a renowned investor, author, and financial commentator, who has consistently offered baseless condemnation on Bitcoin, has demonstrated why the demand toward Bitcoin and the cryptocurrency market can no longer be ignored.

On social media platforms, Schiff announced that GoldMoney, the parent company of SchiffGold, his gold businesses acquired in 2014, will be offering Bitcoin brokerage services to its clients. Schiff claimed that it is not an endorsement of cryptocurrencies but a response to the growing demand toward Bitcoin.

Bitcoin is not a bubble…

Throughout the past few years, Schiff has continuously described Bitcoin as a bubble. Schiff explained that Bitcoin was a bubble when the price of Bitcoin hit $2,000, $3,000, $4,000 and most recently, $5,000. In August, Schiff told Coindesk:

“There’s certainly a lot of bullishness about Bitcoin and cryptocurrency, and that’s the case with bubbles in general. The psychology of bubbles fuels it. You just become more convinced that it’s going to work. And the higher the price goes, the more convinced you become that you’re right. But it’s not going up because it’s going to work. It’s going up because of speculation.”

There definitely were bubbles in Bitcoin and cryptocurrency markets in the past. But, it is completely inaccurate to describe Bitcoin and the cryptocurrency market as bubbles. Schiff has always introduced the concept of intrinsic value to justify the superiority of gold over Bitcoin, but like any asset or currency, the value of Bitcoin depends on its market. Within the last eight years, the cryptocurrency market has become more liquid than the most liquid stock in the world, Apple.

Bitcoin is money…

Schiff fundamentally believes that Bitcoin is not money. By definition, money is a medium of exchange and the value of it should be dependent on the market and users. But, the value of government-issued fiat currencies are manipulated by central banks and were enforced against the will of the people, like the US government replacing gold with the US dollar. Whether Bitcoin is money or not, is not decided by the government or central entities. There are many users, merchants, and businesses utilizing Bitcoin as money, a digital currency, and a store of value. Hence, Bitcoin is money.

According to McAfee and Bank of Finland

As security expert John McAfee stated:

“It costs $1000 to mine one Bitcoin. What does it cost to print US dollar? Which one is the fraud?”

More to that, the Bank of Finland further emphasized in its research paper that Bitcoin is a decentralized financial network that cannot be regulated and censored by central entities, as it operates its own economy in a peer-to-peer ecosystem. It further encouraged economists to study the “marvelous” structure of Bitcoin.

“Bitcoin is a monopoly run by a protocol, not by a managing organization. Familiar monopolies are run by managing organizations, with discretion to determine and then change prices, offerings and rules. Monopolies are often regulated to prevent or at least mitigate their abuse of power. [Bitcoin’s] apparent functionality and usefulness should further encourage economists to study this marvelous structure,” read the Bank of Finland research paper.