Critique of Bitcoin by Peter Schiff
Financial analyst Peter Schiff, known for his critical views on Bitcoin, recently took to social media to mock Michael Saylor, co-founder of Strategy, after Saylor posted that “one Bitcoin equals one Bitcoin” following a significant downturn in the cryptocurrency market. Schiff’s sardonic response highlighted his long-standing belief that Bitcoin lacks intrinsic value, stating,
“Correct, and that’s all it equals.”
Bitcoin vs. Gold: Store of Value
In light of the recent sell-off in stock markets, Schiff emphasized that Bitcoin fails to serve as a reliable store of value because of its close ties to stock market fluctuations. He remarked earlier this month,
“Gold functions as a store of value, a safe haven, and an inflation hedge. Bitcoin, on the other hand, is among the riskiest assets, subject to dramatic changes depending on market sentiment, liquidity, risk appetite, and other psychological factors.”
The Value of Gold
Supporters of gold often argue that it holds more value due to its diverse applications, including its use in the manufacturing of ASIC miners essential for Bitcoin mining. Schiff pointed out that gold, an excellent electrical conductor, is integral to microchips and circuit boards used in technology related to Bitcoin production. He lamented,
“It’s unfortunate that gold is also used to create Bitcoin and process Bitcoin transactions.”
Schiff and Saylor’s Rivalry
Despite being a leading advocate for Bitcoin, Saylor has yet to engage in a public debate with Schiff. According to Schiff, Saylor previously declined an invitation to a debate moderated by a pro-Bitcoin figure back in 2021. Amid ongoing market turmoil, Schiff warned that Strategy might face bankruptcy.
The Larger Debate
In this context, the ongoing rivalry between Schiff and Saylor reflects larger debates about the value and future of Bitcoin versus traditional commodities like gold.
