Peter Schiff is Right About Bitcoin

“It’s digital fools’ gold.”

This is not an attack on bitcoin or crypto. This is an honest discussion about BTC vs Gold.

It’s hard not to side with Peter Schiff’s view on gold.

Gold is valuable in the physical world like Bitcoin is trying to be in the digital world.

From ancient times to the modern day, gold has played a vital role in human civilization.

It was a symbol of immortality and power in many ancient cultures.

The precious metal has been used for jewelry, coinage, sculptures, decoration, monuments, and statues.

One of the most remarkable properties of gold is that it does not corrode.

And its aesthetic qualities and malleability made it a favourite material for making jewelry.

Gold is Finite

Its supply is limited.

As such, it remains a precious metal that is highly sought after.

In an article by The Motley Fool, Peter Schiff said,

“Gold is intrinsically scarce, durable, and malleable and that, unlike paper currency, it can’t be printed.”

Schiff and the bitcoin community believe the global monetary system is in danger of collapse due to unsustainable debt levels.

Schiff says investors are losing faith in the ability of the U.S. to pay its debt, further driving up the value of scarce assets like gold.

U.S debt is foreshadowing an economic disaster

Gold’s value is rooted in its status as a store of value and a hedge against inflation.

Schiff has argued that gold’s tangible nature and historical value make it a more secure store of wealth than bitcoin and other cryptocurrencies.

Between January 1971 and December 2022, gold had an average annual return of 7.78 percent.

When you adjust for inflation using CPI, the average return is 3.7 percent.

Not too shabby over a 50-year time frame.

Bitcoin has not been around for a long time, but its annual return since 2010 has been 271.88 percent.

When you adjust for inflation using CPI, the average return is 165.35 percent.

It’s clear that gold’s 3.7 percent is a solid store of value.

BTC’s 165.4 percent annual return is absolutely insane!

Schiff still thinks that bitcoin is,

Now, let’s move on and explore gold’s use cases.