The much-anticipated debate on the most crucial question of the next decade aired on Crypto Trader’s YouTube channel. The Question: Which is a better store of Value – Gold or Bitcoin.
Anthony Pompliano, the founder of Morgan Creek Digital, represented that ‘1 million crypto-twitters.’ It was an exciting conservation between the two school’s of thought, with compelling arguments from both sides. Here are some of the highlights from the debate:
Schiff trusts gold because it has been money, or of value for thousands of years. While Pomp believes that the system is transforming and people in the digital age would rather trust a piece of code.
Moreover, Pomp said 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.
How do you know in that system that Gold Money is actually doing what you’re telling them to do?
Peter Schiff disagreed, he said competition promotes integrity. Ran Neuner steps in for the first time with his views,
“You are talking about trust in third-party service providers. We know from history that where is this capitalistic society and that there have been some breaches of trust by even the most reputable service providers.”
Nevertheless, Peter was still not convinced that how people would believe that a string of numbers has value and will continue to hold the amount over time. Peter said,
Gold’s had value for thousands of years. There is no reason for it to stop having value. But what you’re doing is you’re trusting something that has only had market value for a decade.
Investment as a Store of Value
It is no secret that Bitcoin’s volatility that always been the Achilles heel for Bitcoin’s argument as a store of value. Moreover, Peter mentioned that more and more people are motivated because they’re buying with ‘ignorance of greed.’
Nevertheless, Pomp added a nice ring to it. He argued that Bitcoin is motivated by the network effect; citing examples of Google and Uber. Once people start using something collectively and it is accepted as a standard,
“network effects are really hard to unbundle.” He added, “Once the network starts to grow. You get a lock-in.”
Moreover, Bitcoin has more significant upside to it due to its scarcity. While Gold could hit $5000 is the best optimistic target for it, Bitcoin traders are aiming around 10x valuations. Hence, according to Pomp, that is a massive motivation for it.
Which is Used More?
The fact that one cannot easily buy a cup of coffee almost everywhere with Bitcoin is true. However, as Pomp notes, it is still more substantial than the number of outlets currently accepting gold. He added,
It is providing crypto-graphic security.
According to Schiff, Gold is still the best store of value. He said,
When you live in a bubble, you can’t see a bubble.
According to him, Gold’s history and its properties that hold over time, making it the best store of value as it has been for thousands of years. On its scarcity, he added,
Nevertheless, both Pomp and Schiff were convinced that the FIAT is destined to doom. While Schiff called it ‘lousy,’ Pomp said,
Introducing a non-correlated asset that has an asymmetric upside to it. I have a lot of properties that gold has… Ray Dalio recently… said, Look we’re back to the Central Bank issue. They’re going to cut-rate, they’re going to print money. Great time to own gold.
Now Pomp believes there is a massive chance that Bitcoin will be the next uncorrelated asset. However, Peter still argued that “To them, it’s kind of religion… a dream.”
Find you who won the debate here,
Who do you think won the contest? Please share your views with us.
The post Bitcoin Vs. Gold: Both Pomp and Schiff Agree that FIAT is Lousy – Find Out Who Won appeared first on Coingape.
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