Recently, Peter Schiff, CEO and chief global strategist of Euro Pacific Capital Inc, a gold lover and highly skeptical about Bitcoin, tweeted saying that he will be hosting a live session on YouTube and consequently invited willing participants to change his view towards Bitcoin.
Meanwhile, crypto enthusiast, Anthony Pompliano accepted the challenge and tweeted, claiming that he hopes, Schiff walks away as a Bitcoin believer.
The Much awaited debate was aired on 31st July on Crypto Traders YouTube channel. It was an exciting conversation between the two schools of thought, with compelling arguments from both sides.
Breaking down the highlights from the Debate
The debate started with the opening statement, Bitcoin Bug – Pomp said that he believes the system is transforming and people in the digital age would rather trust a piece of code. Whereas Gold Bug – Schiff trusts gold because it has been money, or of value for thousands of years.
Pomp continued saying that “Bitcoin provides feasible independent custody of money, which can be spent at the whim of the owner. However, to spend gold, they would have to use third-party intermediaries who transfer the gold, like Gold Money. Moreover, Gold Money is not an open network; only people with accounts can transact in gold there.
Further, he questioned Schiff “how do you know in that system that Gold Money is actually doing what you’re telling them to do?”
In response to this Schiff replied saying, “Gold had value for thousands of years. There is no reason for it to stop having value. But what you are trusting something that only had market value for a decade.”
He further added “You are talking about trust in third-party service providers. We know from history that where this capitalistic society and that there have been some breaches of trust by even the most reputable service providers.”
Better store of Value – Gold or Bitcoin?
Talking about the better store of value Pomp explained saying Bitcoin is motivated by the network effect; citing examples of Google and Spotify. Once people start using something collectively and it is accepted as a standard.
He further added saying, due to its scarcity Bitcoin holds significant power.
While gold hitting $5k is quite a favourable target, Bitcoin analysts and traders predict that the bitcoin would reach 10X of gold.
In response to this Schiff argued saying Google and Spotify provide services, But bitcoin does not provide any service.
Pomp replied saying “It is providing cryptographic security.”
But, nonetheless, Schiff, still believes that Gold is the better store of value as it has been for thousands of years.
Take a look at a complete video of the debate on Bitcoin Vs. Gold