Peter Schiff claims BTC is digital currency, but not 'digital gold'
Recently, Peter Schiff made a strong attack on the claim that Bitcoin is 'digital gold' in a post on X. He mentioned that, during a recent period, the price of gold rose by 3%, while Bitcoin dropped by 3%. Therefore, he concluded to his readers that Bitcoin is not a digital version of gold at all. However, this view may not be entirely accurate.
Bitcoin enthusiasts like to refer to Bitcoin as 'digital gold', but this is just a convenient metaphor. In fact, very few people, apart from a few experts (like the famous opponent Peter Schiff), really get hung up on whether Bitcoin is gold or a gold ETF.
The initial analogy between Bitcoin and gold originated from Satoshi Nakamoto's description in the Bitcoin white paper. He happened to mention that the supply of Bitcoin would increase steadily, much like gold miners extracting gold. However, unlike gold miners who rely on natural resources, the generation of Bitcoin requires contributions of computing power and electricity from everyone.
Although Schiff commented that gold has 100% intrinsic value, while Bitcoin is 100% belief. But we must say that gold itself does not possess intrinsic value. It is regarded as a financial commodity because of its unique properties and its special position in the economic system.
However, the scarcity, durability, fungibility, and recognizability of gold make it a classic financial asset in human civilization. The designers of BTC also hope to realize this vision within a free and open network.
From an investment perspective, Bitcoin was created to help people break free from the dependence on central banks' excessive money printing. Although traditional investors like Schiff still tend to choose gold as a safe haven, Bitcoin's long-term performance has not disappointed, even surpassing gold during certain periods. This has also given people confidence in the future of BTC!
In summary, Peter Schiff strongly supports the intrinsic value of gold and belittles Bitcoin as a belief system; while Bitcoin supporters emphasize its decentralization and digital asset properties, which should not be underestimated in the modern financial system. Whether Bitcoin can become 'digital gold' remains to be seen, but it is reshaping our understanding of currency, value, and investment.
