- Peter Schiff claims Bitcoin has no fundamental worth and acts mostly as a risky investment.
- He portrayed Bitcoin as a speculative asset resembling a pyramid scheme.
- Schiff highlights his T-Gold platform as a digital alternative to Bitcoin.
Economist Peter Schiff debates Bitcoin’s status as digital gold in an exclusive interview with Randi Hipper, claiming it has no fundamental worth and acts mostly as a risky investment that can be badly affected by economic problems.
Schiff used several arguments against Bitcoin as a real value. He stated that Bitcoin requires energy to mine but does not create a tangible asset, whereas gold, by contrast, converts energy into a physical, globally recognized asset.
The economist pointed out that Bitcoin’s price is almost entirely based on what people think it will be worth later, while gold has real-world uses in industry and jewelry, plus a long history as money.
Additionally, Schiff said that Bitcoin is treated as a risky investment that rises and falls sharply. Gold has served as a stable, protective asset for thousands of years.
Related: Stocks Slide, Bitcoin Jumps as Peter Schiff Calls Crypto Rally a “Sucker’s Bet”
T-Gold Over Bitcoin
He also compares Bitcoin to the long-term stability and practical uses of physical gold. He highlights his T-Gold platform as a digital alternative, using blockchain technology to offer secure, private transactions backed by actual gold.
Schiff’s argument is that, unlike Bitcoin, tokenized gold is backed by a real, palpable asset. The key point is that while you still have to trust the company holding the gold and their reports, the chance of your investment becoming worthless is lower than with purely speculative assets like Bitcoin.
He portrayed Bitcoin as a speculative asset resembling a pyramid scheme, where its price depends mostly on new buyers joining, not on any practical use. Those who got in early have made huge profits, but those who buy in later could lose heavily if the bubble pops.
On the other hand, Schiff sees gold and tokenized gold as safer ways to preserve wealth. Their value is supported by limited supply increases and real-world industrial uses.
The economist also highlighted practical use, saying that Bitcoin is not commonly used for everyday shopping because its value can swing wildly, and many merchants don’t accept it. Conversely, tokenized gold can be used like everyday money but is backed by real gold. Stablecoins (like Tether) function similarly but are backed by fiat currency instead of gold.
Related: Bitcoin Waits While Gold and Silver Break Records Ahead of Key U.S. Data
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Source: https://coinedition.com/peter-schiff-doubles-down-on-bitcoin-criticism-in-a-new-interview/
