The document discusses differing views on whether Bitcoin or gold is a better investment. Peter Schiff argues that Bitcoin is "digital fool's gold" and criticizes its fixed supply, while Brian Kelly argues that Bitcoin is a once-in-a-generation investment opportunity like the Internet, as it is a technology platform and digital currency that is growing rapidly. While Schiff views Bitcoin as replicating gold, the document states that Bitcoin is not a replica of gold and has key differences as it can facilitate payments without a mediator and has an infinite supply unlike gold.

1. Unlike Gold, Bitcoin is Once in a Generation Investment
Opportunity: CNBC
teamsteverhyner.com/unlike-gold-bitcoin-is-once-in-a-generation-investment-opportunity-cnbc/
Peter Schiff, a prominent investor of gold and CEO of Euro Pacific Capital, has been criticized by many analysts and
experts including Brian Kelly of CNBC for describing Bitcoin as “digital fool’s gold.”
For the most part, Schiff’s ignorance towards Bitcoin stems from his responsibility to protect Euro Pacific Capital’s
business model, which almost entirely relies on the performance of gold. Schiff has also found the vast majority of
his career success in gold trading and thus, it is essentially instinctive for Schiff to protect gold against Bitcoin.
However, most innovative and successful investors understand that to profit from an ever-changing market, one
needs to beat the market. One asset or currency which has beaten the market for three straight years is Bitcoin by
outperforming all reserve currencies, stock markets and assets, something gold has failed to do.
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2. Rarity, scarcity, decentralization
Currently, the basis of all criticisms against Bitcoin is the absence of
network moderators and the origin of its value. Specifically, conventional
economists struggle to understand the purpose of Bitcoin’s fixed supply,
as it could theoretically lead to economic issues in the future.
Rarity, scarcity and decentralization, the three characteristics of Bitcoin
which conventional economists including Schiff warn investors against,
are in fact the strongest advantages of Bitcoin. These characteristics of
Bitcoin are why mainstream analysts like Brian Kelly are dedicated to
offering fair and balanced coverage on Bitcoin.
In a debate with Schiff, Kelly stated:
“For me, it is Bitcoin. Bitcoin is not just digital gold. It is a technology platform that fintech is being
built on top of. It is a once in a life generation investment opportunity similar to the Internet growing
just as fast if not faster. It is the Internet of money. Everyone is involved in it. The Federal Reserve
released a paper on it. Bank of England is involved in it. 14 of the top 30 banks have active projects.”
Kelly’s statement is factually accurate in that Bitcoin is a technology platform and an open source protocol in which
anyone can build anything on top of. Bitcoin as a base protocol is a payment facilitation tool. It facilitates payments
between two users without the necessity of a mediator.
On top of that layer one technology, two-layer solutions exist as well as other technologies which will allow Bitcoin to
transform itself into a settlement system, digital gold, wealth management product and virtually any financial
instrument which investors and traders may need in the future.
Bitcoin’s structure isn’t a replica of gold
Schiff, however, argues that Bitcoin’s structure is a replica of gold, built to act as an alternative to fiat currencies. As
mentioned above, Bitcoin isn’t a replica of gold nor the monetary system adopted by governments across the globe.
It can operate as gold and a currency but it wasn’t structured to replicate either of those two.
When Schiff states that gold is a more efficient version of Bitcoin, Schiff is considering the commodity aspect of gold.
Gold is a commodity and an asset. But, it is not a payment unit and a settlement network. Its value is dependent on
an infinite supply, which could exponentially increase if companies manage to find massive sources of gold in the
future.
If Bitcoin had a bug which could lead to the creation of Bitcoin out of thin air, Bitcoin’s value wouldn’t be where it is
as of current.
Re-posted from www.cointelegraph.com by Joseph Young March 6, 2017
Never keep all your eggs in one basket. Certainly there’s a place in most people’s portfolio for some
Bitcoin. Your risk aversion will determine how much. Click here to learn more about mining Bitcoin or
email me: steve@prplus.us
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