The sudden rise in the price of Bitcoin these last few weeks has sparked this debate one again. On so many occasions Bitcoin has been referred to as digital gold as well as peer-to-peer gold.
Barry Silbert, who is a well-known Bitcoin investor and the CEO and founder of the Digital Currency Group, Grayscale tweeted which says that the bitcoin vs. gold battle starts today. This tweet led Peter Schiff to give a reply. He tweeted that:
“the ultimate irony in the DropGold campaign is that you can’t mine Bitcoin without using gold. This is just one of the many utilities of Gold that Bitcoin promoters deny exist. But while they overlook gold’s obvious utility, they ascribe utility to Bitcoin where none exists!”
Bitcoin (BTC) News Today
In this debate, some believe Schiff is some sort of curmudgeon, while others see him as someone that observes the market brilliantly. Though, towards Bitcoin his antipathy has been notorious. Schiff is a big supporter of Gold often noting its history dating from 600BC as part of its superiority over Bitcoin. Also, he frequently cites Adam Perlaky, (The Manager OF Investment Research of the World Gold Council) whose report picks the benefits of Gold over that of Bitcoin.
Schiff noted that cryptocurrency while experiencing some great periods of performance also saw some great declines at a time when it should have been excelling.
Bitcoin Price Predictions – Bitcoin As Digital Gold
eToro Senior Market Analyst, Mati Greenspan revealed that he is pissed that the debate is even happening in the first place. He sent an email to Bitcoinist saying:
“Bitcoin is often referred to as digital gold because it shares many similarities with physical gold. It’s a good analogy but we have to remember that they belong in two distinct asset classes. One is an emerging technology and the other is a traditional commodity. Though they share similar properties, the markets for the two assets are completely different.”
Greenspan also noted that both Bitcoin and Gold are stores of value, independent of the government and central banks, and hedges against extended risk. He says the values of both are widely driven by speculation and scarcity.
Schiff might agree with the views of Greenspan and at the same time advocate that while bitcoin, as well as other Cryptocurrencies, may be appealing to some investors, it is definitely cannot replace precious metals.
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