The bitcoiners are not looking for a reserve of value, says gold defender Peter Schiff

The bitcoiners are not looking for a reserve of value, says gold defender Peter Schiff


3. August 2020

A well-known gold enthusiast, financial commentator Peter Schiff said that Bitcoin (BTC) holders don’t really look to the asset as a store of wealth, one of the most commonly promoted use cases surrounding the currency.

„I buy gold as a way to store my wealth, as a conservative place to maintain liquidity, rather than keeping it in dollars or other fiat currency,“ Schiff told interviewer Peter McCormack, host of the What Bitcoin Did podcast, during a July 17 episode. „I think when people buy Bitcoin, they’re not really looking for that,“ Schiff added.

According to the CEO of a hedge fund, Bitcoin won as a refuge of value in the Coronavirus crisis

Bitcoin buyers want to make a profit
The crypto-currency and blockchain industry commonly refers to Bitcoin as a store of value or place to deposit wealth. The asset has also received a number of comparisons with gold. However, according to Schiff, BTC owners really want profit, not constant protection of wealth from inflation.

With profits of 8,990,000%, Bitcoin eclipses all other investments of the decade
Schiff explained:

„People who buy Bitcoin are not looking for stability. They are not looking to maintain their purchasing power. Almost everyone I talk to at Bitcoin thinks it’s going to be $50,000, $100,000, $1,000,000.
The price of Bitcoin has risen to astronomical heights since its launch
Valued at less than a penny shortly after its 2009 launch, Bitcoin soared to nearly $20,000 per BTC at its historical peak in 2017, representing unprecedented gains for early investors. Bitcoin Code has remained a profitable investment for 89% of its life, starting with Cointelegraph reports at the end of 2019. Given its astronomical rise in prices over the years, do asset holders unwittingly want nothing more than profits?

Abra’s CEO agrees with Bitcoin’s role as digital gold

„They think they’re going to get rich off Bitcoin,“ Schiff said after his comment on people’s price expectations for the asset. „I don’t tell anybody that they’re going to get rich off of gold, they’re just not going to go bankrupt off of gold,“ Schiff explained. „They’re going to preserve their wealth that other people are going to lose.

Bill Barhydt, CEO of the Abra financial investment and portfolio platform, said he considers the value reserve narrative to be the leading case of Bitcoin use today.