Peter Schiff, a staunch advocate for gold, has doubled down on his skepticism towards Bitcoin, predicting its eventual demise. In a recent Bankless podcast, Schiff argued that Bitcoin’s ease of transfer actually undermines its value proposition. He stated, “The reason that it’s so easy to send Bitcoin is because you’re sending nothing.” Schiff drew a stark contrast between the physical properties of gold and Bitcoin’s digital nature. He emphasized that gold’s physicality is essential for its real-world uses, citing examples like jewelry making and electrical conductivity. While acknowledging the potential of blockchain technology to improve gold transfers, Schiff dismissed Bitcoin as “digital gold.” He likened it to “a digital image of a hamburger,” arguing that neither possesses real-world utility.
Schiff addressed concerns about gold’s appeal to younger generations, predicting that they will embrace gold as they mature. “All these 20-somethings that are into Bitcoin, when they’re in their 40s they’ll be in gold,” he stated. He believes that wisdom and experience will lead younger generations to appreciate gold’s inherent value.
Schiff predicted Bitcoin’s downfall once new buyers dry up. “There’s going to be a point where you don’t have enough money coming in to enable the money to go out,” he warned. He suggested that Bitcoin investors consider redirecting their funds to gold mining stocks, which he views as a high-risk, high-reward play.
While Schiff’s views are unlikely to sway many crypto enthusiasts, his unwavering advocacy for gold offers a contrarian perspective in the increasingly digital financial landscape. The influence of Bitcoin as an institutional asset class is expected to be a key topic at Benzinga’s upcoming Future of Digital Assets event on November 19th.
