• In an interview with Anthony Pompliano, Peter Schiff said that Bitcoin has no value.
• He used the idea that there is no difference in utility between one bitcoin and many bitcoins as it has no physical presence.
• According to Schiff, fiat currency and gold are better alternatives to cryptos.
Peter Schiff’s View on Bitcoin
Investment manager Peter Schiff recently gave his opinion on the value of Bitcoin in an interview with Anthony Pompliano. He discussed how Bitcoin has no physical presence, meaning there is no difference in utility between one bitcoin and many bitcoins – thus having no value according to his definition of value.
The Modern Monetary System
In 1971, U.S Nixon president took the U.S off the post-WW2 de-facto gold standard, otherwise known as Bretton Woods system. This removed the link between money and its physical representation (gold). Since then, modern money has been digital and controlled by central banks – unlike decentralized digital systems such as Bitcoin.
Dark Economic Times Ahead
Peter Schiff predicts dark economic times ahead due to a loss of jobs which could result in inflation problems, especially concerning consumer staples like food; this will leave many Bitcoin holders needing to sell their coins for sustenance rather than investment or trading purposes.
Gold: An Alternative Investment?
Schiff believes that Gold is a good alternative asset to Fiat currency or Cryptocurrency due to its extensive use in electronics and jewelry; also, its long history of being used as a form of payment makes it attractive during times of financial difficulty. The price of Gold began increasing from 2000 onwards after Gordon Brown sold a large amount from Britain’s national gold reserves at the peak bear market in 1980 which started after 1971 when the link between money and gold was broken.
Overall Peter Schiff does not have a positive outlook for cryptocurrency such as Bitcoin; he views them as having no real value compared to traditional fiat currency or assets such as Gold which have more tangible qualities making them worth investing in during darker economic times ahead