Peter Schiff sparks controversy: Does Bitcoin really have no value?

The well-known gold investor Peter Schiff recently sparked a heated debate on Twitter by claiming that bitcoin has intrinsically no value. His comments immediately triggered a flood of responses from the crypto community.

Experts Rally to Defend Bitcoin

Criticism of Bitcoin is not new, ever since its creation in 2008 by Satoshi Nakamoto, and it doesn’t seem to be stopping anytime soon, not until detractors like Peter Schiff lay down their arms.

Just yesterday, the economist amused the crowd with an incendiary tweet. And the tireless crypto community once again rose to the challenge to put the elusive Schiff in his place, who seems to have sworn only to see the negative in Bitcoin.

“This is how Bitcoin works: we create something of no value, then artificially limit its supply. Next, we pretend it has value so we buy it. Others see the price rising and buy it too. Then, we all hold onto it hoping that the charade will continue to work,” he stated.

Many industry experts quickly responded to counter his arguments. Dave Weisberger of CoinRoutes explains that all forms of money work like this: people collectively agree to assign them a certain value based on criteria such as scarcity, security, or transferability.

“From shells to precious metals to fiat currency, history demonstrates that the value of money is fundamentally subjective.“

Unlike previous forms of money, bitcoin has unique advantages as a decentralized digital unit of account, verifiable, portable, and divisible, all properties that potentially make it the most suitable currency for the digital age.

Another crypto analyst known as PartyMarty humorously replied that he keeps his wealth in bitcoin because he “does not trust” Schiff, implying that cryptocurrencies offer a better value guarantee than fiat currencies or even gold.

Bitcoin Favorably Compared to Gold

Every public statement by Peter Schiff, a lover of physical gold, inevitably leads to a deluge of reactions on social networks. Some bitcoin advocates turn his argument against gold itself.

BlackJackCrypto argues that this precious metal originally had no value or particular utility. It was only gradually, as people became aware of its properties such as rarity, durability, or luster, that its value emerged.

Unlike gold, whose total supply is theoretically unlimited, the capped supply of bitcoins ensures programmed scarcity. Bitcoin, therefore, could ultimately surpass gold as a global store of value, concludes BlackJackCrypto.

Peter Schiff has never hesitated to question Bitcoin. He is very skeptical that even the approval of the Bitcoin ETFs by the US securities regulators is but a fatal mistake.

We’re not necessarily against Peter; he is in fact admired in the crypto ecosystem which does not hesitate to offer him the microphone. His ideas, however, are not necessarily opposed to those of Bitcoiners, for example on the return to the gold standard in the United States or his criticism of central banks, which he blames for all the woes of current economies.