Peter David Schiff, the 1963 born American businessman, investment broker, author and financial commentator, says that though he has a lot of sympathy for what people are trying to achieve with Bitcoin, it’s just not going to work. The CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut stated concerns about the digital currency.
Mr. Schiff who has been investing in gold a lot, and often criticizes the Federal Reserve is though intrigued by the possibilities offered by the virtual currency, has not yet bought any of them for pure skeptical reasons as he says that people think that because Bitcoin replicates all these properties that gold has therefore it can work as a modern day gold standard, but it doesn’t have any value on its own.
Gold Had Value Before It Became Money
This is a lot of skepticism that is coming from a renowned investor and visionary, particularly when some big names in the business and investment world such as Marc Andreessen, and the Winklevoss twins, etc. have invested in Bitcoin. However, Schiff may not entirely be wrong about gold which according to him has implicit value that separates it from currencies like Bitcoin.
Peter Schiff says, “Gold had value before it became money, and that what’s makes it good as money and since there is a valuable commodity underlying its monetary purpose, it will always be better investment option.” Gold has always been the safest investment option and even Schiff believes that the world is going to return to real money, which is gold.
The Currency Whether Fiat or Digital Must be backed by Gold
He admits that the world might have paper currencies backed by gold. According to him the world may have digital currencies backed by gold, but what will give it value is the gold backing. In his opinion the Bitcoin community has that right, and the world needs an alternative to irredeemable fiat currency that the Fed could create at will in unlimited quantities.
However, he is still skeptical about it when he says that unfortunately Bitcoin is not an alternative. A firm believer of the Austrian School of Economics, Schiff is known for his bearish views on the U.S. economy and U.S. dollar. He firmly believes in investing in commodities, foreign stocks and foreign currencies.
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