At the Bitcoin 2025 conference in Las Vegas, Senator JD Vance sparked fresh debate by claiming that Bitcoin had generated significant wealth. However, economist and long-time Bitcoin critic Peter Schiff swiftly challenged these claims, arguing that no real wealth was created at all.
Schiff on X highlighted his strong displeasure with the government’s crypto stance. He stated that Bitcoin did not generate wealth but instead facilitated a large transfer of wealth, from early adopters to latecomers. “What has happened is a massive transfer of wealth,” he wrote, warning that capital has been misallocated and valuable resources wasted in the process.
Meanwhile, Schiff also took a jab at the Trump administration, which Vance represents. He said rather than promoting Bitcoin as a backup plan for bad policies, leaders like Vance and Trump should focus on fixing those policies in the first place. According to him, good governance would reduce inflation and the need for any hedge at all.
A Bit of Humor from Schiff…
Interestingly, Schiff was also a participant at the same conference and shared a humorous observation during a fireside chat. “I’m likely responsible for more people owning Bitcoin than any other individual,” he joked, adding, “Every time I tell you not to buy Bitcoin, you buy more.” Despite his opposition, Schiff acknowledged his role in indirectly promoting Bitcoin through criticism.
He went further, dismissing Vance’s statement that Bitcoin serves as a hedge against inflation and poor government policy. According to Schiff, Americans want real protection, they should stick to gold and silver assets that have stood the test of time. He added that Bitcoin doesn’t offer the kind of safety people are hoping for in tough economic times.
Vance, on the other hand, had framed Bitcoin as a transformative financial tool and even a strategic asset that could strengthen the U.S.’s global economic leadership. His bullish stance highlighted the growing political interest in digital assets, while Schiff’s remarks brought in a starkly contrasting traditional perspective.
In response to Schiff, one crypto user, Metabolic Uncle explained that producing Bitcoin costs more relative to its market price than gold does, averaging 63% of its value in major cities. This means Bitcoin carries more real-world input like energy and hardware, giving it a stronger intrinsic value compared to gold.
At the time of the debate, Bitcoin was trading at around $108,237, slightly down on the day, but still reflecting strong market interest.
Some argue Bitcoin has more real-world input costs than gold, like energy and hardware, supporting claims of its intrinsic value.
Critics like Schiff say promoting Bitcoin avoids fixing bad policies and doesn’t address inflation or economic mismanagement.
Peter Schiff favors gold for stability, while Bitcoin advocates highlight its potential for high returns and unique digital properties, with some suggesting diversification.
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