As Bitcoin today trades closely against the shore of USD 11,000 after already twice breaching the line on the weekend, Bitcoin advocates have stirred up a social media storm with pro-gold influencer Peter Schiff.
Schiff is the figurehead for the gold proponents, actively trashing Bitcoin and in public interviews, at every chance he gets. He wrote on the weekend:
“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… But therein lies the problem. Once hodlers decide to cash out, the price collapses, wiping out paper gains before they can be realized!”
Keiser Report host Max Keiser led the backlash against gold backers, who had earlier been indignantly insisting that Bitcoin was still an inferior asset to gold, even on the back of its current rally, which they say can only be temporary.
He Tweeted back his own broadside, taunting the lack of knowledge on economic theory from many in the gold quarter:
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.
— Max Keiser, tweet poet. (@maxkeiser) June 23, 2019
He goes so far as to say that gold’s recent fortunes — the precious metal is enjoying a very good uptake in price — owes much to Bitcoin’s ability to attract investment into alternative stores of value and “hard money”, and other external factors as well. Keiser asks in jest:
“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.”
Last week, Schiff ran into a rut when trying to disprove Bitcoin’s intrinsic value, an argument he has held from as far back as 2011. “The only demand for Bitcoin comes from speculators,” Schiff said. The response from analyst Vijay Boyapati was plain:
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. pic.twitter.com/LXngwYxvDN
— Vijay Boyapati (@real_vijay) June 23, 2019
“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.”
Image Courtesy: Pixabay