The much-awaited debate between Anthony Pompliano and gold bug Peter Schiff happened yesterday on CNBC Africa where the cerebral faithful of two different assets –bitcoin and gold engaged in technical conversation.
Proponents of other assets have debated cryptocurrency investors greedily in recent time. In fact, some university professors come out openly to rubbish Bitcoin, the same way some policymakers do. But all these criticism have weighed less in the sight of cryptocurrency enthusiasts who feel Bitcoin has come to stay.
Not in love with Bitcoin?
Peter is not in love with Bitcoin, rather than fall for the digital token, the gold bug would consider going for a different asset, as he revealed recently about Facebook’s Libra where Schiff congratulated Facebook for introducing Libra currency.
To Schiff, Facebook’s Libra is superior to Bitcoin for the fact that it is going to be a digital asset backed by something (loads of fiat currencies).
Well, in the conversation with Morgan Creek Digital co-founder, Pompliano, Peter Schiff was sure Bitcoin still can’t share the same good characteristics as gold which has been in existence for well, over 3000 years.
Peter Schiff, who is CEO, chief economist and global strategist of Euro Pacific Capital Inc. is a global critic against Bitcoin and crypto with Bitcoin did not see anything worthy or commendable in the way Bitcoin trippled in price this year alone.
No Bitcoin VS Gold Argument. Really?
Opening the stage, Pompliano, maintained he was not on the programme to argue against gold, saying he thinks gold has a place in people’s portfolio.
Pompliano maintained his ethics while convincing Schiff on the future of Bitcoin, however, he did say Bitcoin has a number of advantages in places that gold doesn’t. He asserted that Bitcoin has a role to play in people‘s portfolio.
Responding, Peter said he has a lot of sympathy for Bitcoin bugs, especially their skepticism about fiat monetary system. To the skeptics, Peter stated that there is a monetary alternative to gold.
Schiff asserted that Bitcoin creator, Satoshi Nakamoto and other cryptocurrencies are trying to replicate the qualities that makes Bitcoin a better form of money than other commodities that serve the purpose of money.
“But the one key property that Bitcoin can’t replicate is the properties that made gold a valuable commodity.”
Explaining this, he said before gold was money it was a commodity.
“It was a very rare and highly desirable luxury good that has all sorts of uses, and it’s those fundamental uses that give it its value. It’s its other properties that make it serve as money and the reason it’s a store value is because the properties of gold don’t decay over time.”
He said bitcoin faithful have pie-in-the-sky delusions about the future price of Bitcoin, especially how height the digital currency will go in the future.
Here, Peter said the main motivation is for the price to go up, saying people don’t use the digital currency.
He said Bitcoin had more volume than Venmo, Applepay or Paypal. Confirming that the transactions are real, Pompliano said they are on chain, so they can be verified.
Peter said Bitcoin is still not used to buy coffee, however, Pompliano responded saying, that is not the major purpose Bitcoin was created. He added that gold cannot be used as well for the same purpose.
While Peter hammered on Bitcoin being a print from thin air that was bought with a meagre amount to be sold for a high price in the future, Pompliano and the CNBC host, Ran NeuNer conjectured Peter is criticizing Bitcoin because he did not have the opportunity to buy it a low price.
The conversation went on for close to an hour. In the end, Pomplaino used the statement of Satoshi Nakamoto to end the debate.
“If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry” – Satoshi Nakamoto.