The ever-outspoken investment broker, author, financial commentator, and renowned “goldbug,” Peter Schiff, has once again gone on record to express his opinion in the latest installment of Bitcoin vs. Gold.
Everyone familiar with Peter Schiff knows that he is certainly no stranger to the gold market. In fact, Schiff's incessant warnings of a looming economic collapse have earned him the nickname of "Dr. Doom.” The best way and quite possibly the only way to protect yourself from this pending crash is to buy gold, according to Schiff.
Bitcoin equals gold?
“Bitcoin really replicates all the properties of gold, even improving on some of them,” said Schiff, noting such similarities as the “mining” process, which both require resources to be expended in order to get the “coins” or metal out.
Schiff also noted other analogous properties to gold such its scarcity: only 21 million Bitcoins will ever be created similarly to the finite amount of gold on the planet.
Finally, Bitcoin is similar in its divisibility just like gold, which can be melted down into smaller quantities. Bitcoins might even be more cost-effective in this manner as it costs virtually nothing to break a whole Bitcoin down to the nearest tenth, hundredth etc.
Schiff likewise conceded that Bitcoin as a technology even improves some properties of the precious metal. These include its mobility, allowing users to send Bitcoins to anywhere in the world instantly bypassing any central bank or third-party.
Additionally, gold must also be stored and secured – a problem which led to the establishment of the banking system. However, there are many issues that arise with the implementation of such a centralized system such as friction, third-parties, time-cost etc.
Compare this to Bitcoin where it costs virtually nothing to store any amount from a tenth of a Bitcoin to a trillion Bitcoins in a digital wallet.