Peter Schiff Says Bitcoin Has No Value: What Does That Mean?
• Peter Schiff, in an interview with Anthony Pompliano, said that bitcoin has no value.
• He believes that due to the lack of physical presence of bitcoin, there is no difference in utility between one satoshi and all the bitcoins in existence.
• According to Schiff, dark economic times are ahead and people will need to sell their bitcoins to buy food.
Peter Schiff on Bitcoin
Peter Schiff recently gave an interview with Anthony Pompliano where he argued that Bitcoin has no value. His argument stems from the fact that Bitcoin does not have a physical presence and thus lacks any real utility when compared to fiat currency or gold.
No Physical Presence
Schiff argues that because Bitcoin does not have a physical presence, there is no difference in utility between one satoshi and all the bitcoins in existence. As such, it cannot be used for anything practical such as building a house like fiat currency or gold can be used for.
Dark Economic Times Ahead
Schiff believes that dark economic times are ahead and people will need to sell their bitcoins in order to buy food. He argues that gold is a better alternative than both fiat currency and cryptocurrency due to its long history of being used as money as well as its physical value which makes it useful for electronics, exchange, and jewelry among other things.
Fiat Currency Under Pressure
The modern monetary system goes back to 1971 when then U.S President Nixon took the U.S off of the post-WWII de-facto gold standard known as Bretton Woods system. With this change came increased pressure on fiat currency which can be seen today with rising prices for gold since around 2000 when Gordon Brown sold a large amount of U.K’s national gold reserves at the peak of a bear market which began in 1980.
In conclusion, Peter Schiff argues that Bitcoin has no real value due to its lack of physical presence when compared with both fiat currency and gold which have tangible uses along with having been used historically as money throughout human history. With dark economic times looming ahead many people may find themselves needing to sell their Bitcoins just to survive financially during this difficult period