Gold Bug Peter Schiff Says ‘Cryptocurrency Market Signals Are Wrong’

This week the media outlet RT published a new Keiser Report from the Freedom Fest 2017 conference in Las Vegas with host Max Keiser. During the report, Keiser talks with the economist and long time ‘gold bug’ Peter Schiff about the decentralized currency bitcoin. Schiff says he understands that people want an alternative to the current monetary system but believes an alternative to fiat will not be cryptocurrency or what he calls “digital fiat.”

Also read: Breadwallet’s Bitcoin Cash Tool Arrives Next Week — Full Client Coming Soon

Bitcoin Is Just a Form of Digital Fiat Based on Faith

Gold Bug Peter Schiff Says 'Cryptocurrency Market Signals Are Wrong'
Peter Schiff.

Peter Schiff is a well-known economist, precious metals proponent, and a person who doesn’t like cryptocurrencies at all. Max Keiser discussed the global economy, Trump, and the Federal Reserve with Schiff at the Freedom Fest event held in Las Vegas last month. Then the two further delve into a conversation about the rise of bitcoin and Schiff gives great detail into why he doesn’t favor this technology. Schiff believes bitcoin and other cryptocurrencies are merely representations of digital fiat.

“Our monetary system is based on faith because there’s nothing real behind dollars or euros, and it’s just based on the fact that you believe people are going to want it,” explains Schiff. “Other than that, the other thing currencies have is that governments accept it or require it for payment of taxes. So if you live in America, the IRS wants your taxes, and you better send them dollars. That’s what they accept there, and there is a natural demand for dollars to stay out of jail.

[Bitcoin] is the same concept. It’s being created but there is no real value in bitcoin it’s all based on faith. If somebody doesn’t want your bitcoin there’s nothing you can do with it right?   

People Hold Bitcoin as a Speculative Asset

Gold Bug Peter Schiff Says 'Cryptocurrency Market Signals Are Wrong'
Max Keiser.

Of course Max Keiser a long time cryptocurrency advocate disagrees with Schiff and says that a lot of millennials believe bitcoin is a form of ‘digital gold.’ Keiser tells Schiff as a business person he should be on board with this trend or otherwise he’s ignoring an entire market.

“They are wrong,” Schiff tells Keiser. “The people that are using it [Bitcoin] are using it as a speculative asset. I talked to a guy today who showed me his cryptocurrency portfolio, and he had like $50,000 — I asked him have you ever spent any? He said “no,” and he’s never used it in commerce — He’s speculating on it, and he owns it as an ‘asset.’”

Keiser counters Schiff’s argument with the fact that gold bugs don’t spend their precious metals either, and they hold it as a speculative asset. Further, Keiser says a lot of these ‘gold bugs’ pay storage fees just to store gold in a secure location.

“Look [Bitcoin] is never going to be used as money,” Schiff tells Keiser. “People can buy it, and the price can go up until the price collapses, and people don’t want it anymore.”

People who are buying it think that one day bitcoin is going to be a currency that everyone uses — It’s going to be worth a million dollars a bitcoin. It’s impossible. First of all there’s already a thousand other cryptocurrencies and how many more can there be? Merchants don’t accept it, they get paid in dollars. No merchants are pricing products in bitcoin.

‘Market Signals Are Wrong’

Schiff doesn’t believe in the market signals Keiser describes. The economist explains that the market was giving signals during the dotcom bubble and other types of stocks. However, Keiser says that even though the dotcom bubble burst, Google and Amazon still rule the world.

“Amazon is one, there are hundreds that went to zero,” says Schiff. “So how do you know? What if somebody comes up with a digital currency a year or two from now that is so much better than bitcoin? It’s everything bitcoin does, better, faster, and cheaper. Everyone then wants that new one, and nobody wants bitcoin. It’s worthless.

Nobody wants it anymore because somebody came up with a better mouse trap. Of course I don’t think that’s going to happen, because I don’t think any of them will work. If we are ever going to have digital currency they will have to be backed by gold! They’re not going to be backed by nothing.

Keiser believes bitcoin has a lot of similarities with the very precious metals that Schiff advocates for on his show and at conferences. Still, Schiff to this day will not accept bitcoin as a form of ‘money’ and thinks it will never be widely adopted.

“Sure, there is digital scarcity — There is 21 million bitcoins, but if nobody wants them they are worthless,” Schiff adds.

What do you think about Peter Schiff’s opinion regarding bitcoin and cryptocurrencies? Do you agree with Schiff or do you agree with Keiser? Let us know your thoughts in the comments below.


Images via Pixabay, RT, and Twitter.  


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  • Jesse (SiMuL)

    lol, this guy clearly hasn’t been paying attention to the rest of the world and how Bitcoin is being increasingly accepted (and desired) as currency.

    • Mary Thibodeau

      My thoughts exactly!!

  • anon457

    Ive seen loads priced in bitcoin, but Ive never seen anything priced in gold, so isnt gold purely speculative?

    • Ken

      to be fair, everything used to be priced in gold. Nixon took us off the gold standard and made our fiat currency worthless. Dollars used to be able to be traded in for gold/silver, now it is “full faith and credit of the u.s. government”.

      Gold still has intrinsic value, it just isn’t convenient like digital currency. I keep my share of it however. If the system ever crashes, gold/silver are always good to barter with. EMP strike will blow out all the crypto stuff, potentially so diversification is a good thing.

      • Blabamouth

        Then gold is not anti-fragile, and was able to be controlled.

      • Manoj Sharma

        I’m a farmer writing from a small village in India. First of all I appreciate the forum and would like to say thanks to Peter Schiff and Max Keiser for sharing their thoughts about this young topic.
        Before sharing my thoughts about this topic which I have named “The thing is backed by nothing” I’m pointing out few terms.

        * Thing – (consumable/usable/less consumable)
        * Value – ( keeping the price in mind or how precious thing is.) price of a thing can be determined basis on two points one is difficulty level in getting the thing and second demand or requirement of that thing. Like the consumable items would have a grate demand so supply and demand would directly affect the value.Usable or less consumables would have lesser demand.

        * Source – Natural or produced by humans. Point to know whether the source is limited or unlimited. Here the difficulty level would determine the Value. Gold and other precious metals we got them from Nature. Here the value is determined by limit and difficulty level. (It is backed by Nature and it is being used as backup for all fiat currency.

        Sorry to say but rest almost everything is by product.

        Centralized Vs Decentralized , these terms are related to security purposes only. Nothing to do with difficulty level.

        21 million bitcoins (only?) this is also determining the difficulty level if it is “only” you can say it decentralized or there is no control over supply.

        * Note – is related to promise to pay. Nothing to do with price or difficulty level. it serves the convenience in dealing with different things.

        * Taxes – Keeping an Account of those who are holding d value, Transaction management or the Banking system should charge for their services.

        Insurance companies/ Banks RBI/Federal/Government- They are the supporters who serves the nation. they take responsibility of managing the people for their safety and security by making rules and regulations appointing the security officials. They all should be paid. Who will pay them if there is no Taxation.

        * Trust- Can you trust a Software? Who is behind the machines? A human being is behind the machines/cloning/piracy and hacking. Can you trust unknown person for your thing?

        My conclusion- I can never forget Natural Sources for my survival. Secondly The productive resources on earth who are producing the consumables and usable things.

        Though the service providers are non productive resources but still they should be paid for being responsible.

        One day I thought of having a robot to take baby care of my newly born. But I think Robot might fail in recognizing all type of snakes or insects on earth.

  • Darthseven

    This guy is blind.

    • No, he is egotistical. He made a ‘call’ on Bitcoin years ago, and refuses to admit he was wrong. Someday there will probably be some type of correction and he can say he was ‘right’, for however long that lasts.

  • BitBox Crypto

    Peter Schiff sounds like a dinosaur. He also sounds like the people who hated Bitcoin back in 2010, meanwhile in 2017, several millions of dollars and millionaires later…

  • Troy AG

    If nobody wants bitcoin its worthless! (correct.) But that goes for everything. If nobody wants oil, god or silver that is worthless also.(correct?) Schiff should hold a little and use a little maybe then and only then will he understand it. Nothing wrong with gold and there is nothing wrong with Crypto currencies.

    • Rob Mancuso Jr.

      ^^ This.

    • Panda

      Lol “if it gets worthless I’ll buy more” -this is what we keep bitcoin growing.

  • It appears to me that Schiff has a biased opinion and is out of touch due to his personal economic interests.

  • Rewa Shankar Daheriya

    fact of the story : they are trying to manipulate market because missed his bitcoin flight. lol

    • dr evil

      it’s not manipulation.. he’s just a goldbug. can’t argue with them. because “intrinsic value” well their intrinsic value is giong DOWN against fiat.. yep even when fiat is falling.. gold has been falling worse against fiat.; and fiat is the thing they want to run away from lol

      • Ken

        problem with gold is it is the price is highly manipulated by the central banks, especially the fed. It is actually forced to be artificially low and as soon as it starts rising, the fed manipulates interest rates, currency printing or even gold purchase/distribution to keep the gold price steady and not an actual gauge of inflation

  • Schiff, moron. I bought gold and electronics from merchants dozens of times this year with BTC and ZEC. Zero FIAT involved on my end. Get out of your bubble, Schiff.

  • Henry Irreno

    The cryptocurrencies are here to stay. There are more advantages than disadvantages in the exchange. If any new coin better than the ones in existence now comes up. That doesn’t mean the rest will disappear without a fight. I can see that the banks will want a piece of it. Don’t be surprised if one day we will see Bank of America Cryptcoin.

  • Daniel Stan

    Then, the money printed by the Fed and by all other countries’ money printing institutions are not based on faith but on faith’s opposite or worse, because they can print money any time they want and any quantity they need or want. Instead, Bitcoin cannot be issued infinitely but can only be mined through hard efforts made in the benefit of all crypto users.

  • rolf_schenk

    anything can happen and I use bitcoin/crypos already quite a bit – see latest news on overstock, purse and tenx. the future won’t be fiat with a central authority and banks that can multiply cash on debits – if one should be allowed to do this, then it’s the asset holder him/herself.

  • InOneHour

    Bitcoin ledger is open for anyone to look at, people are learning everyday why the private bank gets to control everything with zero oversight.

  • danystatic

    Co-workers just bought Bitcoin for the first time. Thats what matters, not Peter Schiff.

  • dr evil

    if no one wants your gold, there’s nothing you can do with it right? 😉

  • Dyun

    Hopless…

  • Fortress Client

    Being a client of Euro Pacific Bank and long time follower of Peter Schiff I am saddened to learn that he is still ignorant about the crypto market. He needs to sit down with an OPEN MIND and listen to some crypto experts about what it is and why Crypto is here to stay long term!

    Crypto not being used as currency? umm… Japan just made bitcoin LEGAL TENDER and forcing all their top businesses to start accepting Bitcoin this summer – which is a large reason of the recent bull run – other countries are looking to follow Japan and making plans of their own. Including some pretty big names…

    I think the fact Schiff owns a bank and being a gold bug, he has to be careful about what he says as a lot of people follow him – however I can’t help but see the ignorance in some of the wording, he can’t just ignore a 100+billion per day market and slap a BS sticker on it… He really needs to go to a Crypto conference or invite some seasoned experts to actually learn about Crypto and take a deep dive on the subject.

    Crypto is still in its infancy stage – less than 2% of the world is involved with Crypto – when that goes to just 5% that is over 250% increase over today! There are only 21 million Bitcoins and you think people are going to jump on to a different coin? seriously? This is a very simple supply/demand scenario and the price has only one direction ahead of it long term. I don’t know if it will go to 1 million a coin but i would bet everything i own that it increases in value significantly rather than tank. Look at Ethereum, it is a superior crypto currency in just about every way, faster, smarter, banking industry getting involved (bank of america etc etc), hedge funds, you name it…. So did everyone forget about Bitcoin and jump ship? ummm….. nope…

    All a superior crypto will do is open up MORE eyes to the crypto world and increase price on ALL the top crypto currencies… Bitcoin = 21 million coins… Supply/Demand… very simple… with an ever increasing demand and supply stuck at 21million the price will only go up…

    I would LOVE to read about Schiff’s comments after he actually learns about crypto and speaks to some seasoned experts with an open mind…

    • Tim Tayshun

      I’m a big fan of Peter Schiff, but if I’m not *mistaken (*citation needed), he’s flipped his position slightly since 2013. I seem to recall him having been at least lukewarm top the idea (prior to Mt.Gox.

      Anyhow, Schiff is definitely a smart fellow, but I would absolutely LOVE to hear a panel discussion on the subject of bitcoin v. gold with him, Andreas Antonopolous, and Chris Skinner. I think all parties, including the audience, would leave enriched. And I believe Schiff might just come around.

      Can someone set that up? Pretty please?

      • Doug

        I agree I think he used to be pro crypto too. I thought I saw that I been following him for a while my self. considering there is crypto coming out with gold backing too doesnt make sense, even his own Goldmoney accepts Crypto for gold in dubai vaults.

    • Ken

      I agree with much of what you said, but while I think Crypto is the future, and bitcoin has a huge market share lead, will it be the end game coin? Who knows. the limited supply of 21 million being fixed is a good thing, but on the other hand, if it goest to 1 mill/coin, are people really going to want to deal with 0.000000212 btc for such or a cup of coffee? Who knows. Once it goes highly fractional like that many people will have a hard time getting their brain around value.

      I wonder if it would be something like btc becomes the 100 dollar bills eth becomes the 10s, ltc becomes the dollars, xrp the quarters, etc and different coins get used in conjunction with each other in a given transaction to manage the wide differences in valuation. No idea, just thinking ahead because someone getting a weekly paycheck that shows they got 0.00045 btc or such is kind of demoralizing.

      • Blabamouth

        Bitcoin will absolutely be the one. It’s a dynamic coin evolving with the times… from a monetary and economics perspective, it’s a hundred times the coin Ethereum is. No other coin comes even close. Bitcoin is being engineered as the perfect money. Even LTC will continue living in Bitcoin’s shadow but never be able to usurp it.

        • Ken

          well, if you are actually that prescient you should be a millionaire if not a billionaire at this point. Either that or you don’t understand the hurdles that have to happen. Optimistic views are great, but realistic views are far more helpful. There is much that has to happen to make bitcoin “the coin” aside from its current market dominance. iPhone at one point had 80% of market, now it has about 20%…just as an example. Nothing is a “sure thing”, Crypto isn’t even a sure thing, let alone Bitcoin as a subset of crypto. We would like to believe that, and many of us are betting on that, although i am believing crypto, i don’t know if btc will be the answer so putting a little bit in several spots.

          Ether in many ways is a much better coin and even more widely accepted than bitcoin in many areas, so who knows? There is a lot of different things going on here with no clear answer as to where the future will lie..

        • It seems to be there sure was a lot of … friction .. in it’s evolution. I’m glad to see it evolving, but man, that sure was *hard* (to fix a single thing). Maybe that is a good attribute, I dunno.

      • Rafael Valentino

        the issue of 0.000000212 or 0.00045 btc isnt an issue, thats like saying kilometers will never work because people will want to measure small things in millimeters, well they just measure them in millimeters. we already have mbtc and satoshis and probably others, people adopt quickly. also even if btc isnt the endgame the change wont happen overnight.

        as far as the original interview, hes all over the place so its difficult to comment on. I agree most cryptos are purely speculative based on possible future use and I personally wouldnt invest in them, but bitcoin is used, Im not sure the exact figures, maybe a billion $ a day. the exchanges dont control the market (mostly anyway), the exchanges reflect the market and that market isnt going away, another crypto may take over but it will be a gradual change over a number of years, bitcoin has too much of a lead

    • Ifemayowa Omotunde-Bank

      Honestly, SCHIFF lost the depth….. his argument is bereft.

  • Frank Zeleniuk

    I don’t know but I think most bitcoin proponents think that the the digital number representing their bank savings account balance is money, entirely redeemable for as much paper as it represents and it is exchangeable for anything. It must be money.Even though if it sits in their account it loses value over time – don’t get me wrong that could happen with real money too but it is less likely but holding value over time is one of the characteristics of real money. Is bitcoin real money now? Not quite yet. It is popular as it seems a better option as a digital entry than the governments digital entry in your bank account and hopefully will replace it.

  • pyrophilia

    If No one wants Schiff’s Gold what’s he going to do with it? The fact that Bitcoins price is purely determined by demand doesn’t detract. A lot of things are that way. The Dollar, Fiat currencies. Etc.

  • l1b3r7y_n0t_au7h0r17y

    I am a big fan of Peter Schiff but I believe he’s completely wrong on this. It’s no wonder. His entire life, career and business are centered on the belief in gold. He is one of the world’s leading evangelists. He will be admit defeat on this no matter what happens, always predicting the downfall. Its just what Dr. Doom does.

    This precious metal vs crypto has been widely debated and in the end belief is essential for any currency. Gold can never be decentralized because of bulk and theft so it will always lead back to a corrupt system of governments and banking. That is why cryptocurrency or a descendant will win in the end.

  • sjs

    Schiff uses the same argument every time. If Max Keiser wasn’t such a fruit loop and prepared his interviews a little better he could have handed Schiff a list of company names that all accept crypto. Why interview Schiff at all, he will never change his position even if gold drops to $600/oz and I certainly hope it does not. There is nothing to say that multiple items of value can’t be used as currency but fiat is a dead man walking. I would accept Gold, Silver, Crypto, Rubys etc and there are many like I.

  • “[Bitcoin] is the same concept. It’s being created but there is no real value in bitcoin it’s all based on faith. . . ” What a poor ass. He joins a long list of pseudo-official representatives of official culture like Warren Buffet, who compared the mining of bitcoins to the printing of money orders; and billionaire Howard Marks, who, even at this late date, says that bitcoin may be Ponzi scheme. So “there is no real value in bitcoin”! But there *is* real value in bitcoin. It is a system of immutable data registration. And in order to use this system of data registration you have to buy a non-counterfeitable crypto-token called a “bitcoin.” The easy transmissibility of a “bitcoin” gives it an obvious value as a currency. Thus, a currency called “bitcoin.”

  • why bother

    One point Peter makes is that a better cryptocurrency might one day replace Bitcoin. However that means he concedes there can be an improved cryptocurrency medium of exchange. Watch out because the better cryptocurrency is as a medium of exchange the more likely gold will lose its safe haven status

    • I even agree with him on that point. There will be a day when there’s a better cryptocurrency in many ways, and Bitcoin will lose favor. That doesn’t make it worthless until that point, and it probably won’t go to zero at that point. It will become devalued. The Model T wasn’t the last word in automobiles, and Bitcoin won’t be the last word in crypto. However, I’ll bet a Model T is worth a pretty penny (sorry) today.

  • How embarrassing for someone of Schiff’s stature to refer to Bitcion as “digital fiat,” showing his extreme ignorance!

    Further, it’s a logical fallacy that nobody spends Bitcoin because the person he met doesn’t spend any. I hate to break it to him, but I’ve used it as money.

    • sjs

      Schiff, like a number of gold promoters, is more than a little nervous about the escape that cryptos have lent to people who might otherwise have stayed the course with the PM’s. Schiff knows very well that he is not speaking the truth. He needs investors to stay focused on gold and silver. We are now in a time period where words mean almost nothing.

  • SPQRUSA

    Schiff is an “economist” meaning he is not expected to know “real math”.

    In the real-world, Mathematics backs Bitcoin. Bitcoin represents the stored labor to find and mine blocks and the organizing of transactions and associated fees. Bitcoin is backed by real work and maybe that’s why Schiff cannot see it. Banksters don’t know about real work.

  • Remco Pit

    If you have 60% cash, 20% crypto, 10% silver and 10% gold (both physical in your hands), i think you cover all these bases pretty well.

    Only thing i’m worried about is that crypto will become as manipulated as the silver and gold markets.

  • StevenK

    OVERSTOCK.COM seems to accept crypto currencies just fine.

  • BTCD

    Scarcity drives demand which influences value. I have read a lot of circular reasoning when maybe some paradoxical thinking may help in the overwhelming false dichotomies being espoused in the comments. It is not a this or that, either/or situation comparing gold to cryptocurrencies. Much more complex with many variables to consider. Precious metals and stones could be considered the ultimate decentralized currency. A gold nugget has no borders, belongs to no government, can be used as trade between individuals, almost impossible to trace, brings a level of anonymity that ledgers do not, etc. I am pro crypto. Just using some of that paradoxical thinking I was alluding to earlier in my comment 😉

    • sjs

      There are considerable restriction in moving Au and Ag across borders from personal experience. The same may soon apply to cryptos. As long as you carry a wallet, hard or software, you may be deemed to be carrying cash in excess of the permitted limit through customs. I spend a lot of time travelling and researching how to diversify not just by asset type but also by geographical location and remain within the laws.

      • You may right, I have to work on my photographic memory. Your comments remind me I have to re-watch Johnny Mnemonic.

        • sjs

          How odd you should say that, I have considered taking a new Trezor with me and remembering the 24 word seed. 😉

          • lol, same here.

          • sjs

            Having a photographic memory is all fine and good, but do we have film? 😉

          • I was thinking of wearing my code. Not like written out, just pieces of my wardrobe and the way that I wear it or the contents in my pockets in an order I could remember easier. Also, thought of building a crypto crossword with answers I would understand, nothing personal or revealing to anyone else. I need help, sometimes I dream of these things. Like the movie Paycheck.

          • sjs

            Hilarious but you’re not alone. I was thinking of writing a short story and embedding the 24 words in a numerical sequence that I can remember. We need an enigma machine. Now try to be a responsible adult and I’ll promise to do the same. ;-)))

  • Ifemayowa Omotunde-Bank

    I DISAGREE COMPLETELY WITH SCHIFF…. there’s a need for shift…. and CryptoCurrencies perfectly fit into that paradigm.

    And he talked about this 👉 “….there is no real value in bitcoin it’s all based on faith. If somebody doesn’t want your bitcoin there’s nothing you can do with it right?”

    Schiff may have a point but I believe he lost the depth…. EVEN GOLD (AT INCEPTION) WAS A SUBJECT OF PEOPLE’S PERCEPTION OF VALUE AND FAITH.

  • Jim Shepard

    Sounds like Schiff is another brain-washed “gold bug” as so many are into imagining that gold has some monumental value and superiority over paper money or anything else. But look, he’s not wrong about Bitcoin being a speculative asset and he’s also not right about gold being any better than Bitcoin at the end of any given day.

    If nobody wants your gold it also won’t buy you shit anymore than if they don’t want your Bitcoin. Don’t forget when the Mayan civilization used “cocoa beans” as money because the consensus on the culture at the time was that the chocolate beans had superior value quality. But then the Spaniards laughed at that ideology and dumped full cargo ships worth of the beans onto shore left to rot.

    Gold is a piece of shit rock. Bitcoin is a piece of shit computer code. If you eat enough cocoa beans you will shit in your pants. And with paper money you can wipe your ass.

    Finally, stocks are also a purely speculative asset based on a consensus-driven philosophy and ideology to “trade the stocks” regardless of whether any parent company is worth a shit or not, as the infamous DOTCOM bubble proved. But if you’re a gold bug, a fiat freak, a stock buff or a Bitcoin nerd, then none of it matters. Pick your poison and go with it. At the end of the day you are no more right or wrong than anybody else.

  • russell UK

    I get what he is saying but his argument must be flawed. Gold only has value because people believe it has value. If the money invested in Gold starts to shift into Crypto the value of Gold could collapse. Maybe it will happen and maybe it wont but surely the same concepts that he uses for Crypto must hold for Gold. Also given the way the world is changing Gold may not last for much longer.

  • russell UK

    ??

  • Dr. Bubó

    LOL
    So many comments here full of shit!
    This article is the first real argument about the role of cryptos here since I read it. Yes, he has biases – same as everyone else. He is right to say that cryptos have no intrinistic values and can worth nothing. I don’t think it will, but in theory it can happen. While the FED still has 8k tonnes of gold which backs the US banking system.
    The other point is that BTC became an asset. Only fools and criminal would spend something what is likely to worth 10x more same time next year. Simple.
    This is a good argument, I love it. Would like to read more about both of them.

    • He called crypto fiat. That’s flatly untrue.

      He says gold has intrinsic value and bitcoin doesn’t.

      They both have value assigned to real-world use. With gold it’s the metal’s properties, which, given the amount being hoarded, are overrated. With crypto, it’s the digital mathematical security and distributive properties beyond gold. They both have strength and weaknesses, which is why neither will be going away (nor will silver.)

      It is hogwash that money needs to be inflationary. FIAT needs to be inflationary, for the good of banks and governments.

      As for spending, value is ultimately based on exchange. I must be an idiot, because I both hold and spend.

      • Dr. Bubó

        Do your homework and you’ll find that the basic functions of money go hand in hand with inflation.
        Bitcoin has only trust behind. No one HAS to accept it. USD backed by 8k gold and the government HAS TO accept it. Yes USD has more intrinsic value than bitcoin.
        Gold is f… underpriced.
        You can start with Stephen Belgin – Bernard Lietaer: New Money to a New world and James Rickards: Currecy Wars. Both available for free download. But please don’t write me again this commonly believed bullshit propaganda.

        • OMG, the old canards, and you dare to call MY post bullshit propaganda! LMFAO! The USD has the power of war behind it, and it’s what’s behind the power of war. It can be arbitrarily inflated when they feel like more wars. Gold is not portable, and its “intrinsic value” is minimal. Spew ancient statist lies and you’re gonna get called out. Block me if your tender sensibilities cannot handle my posts.

          • Dr. Bubó

            LOL
            No, don’t read, don’t study then, stay stupid ignorant. GOOD strategy!

          • LOL, I’m ignorant because I don’t agree with your old school BS.

          • Dimitri Andre

            Right talking about money has to constantly lose value(inflation) to be sound and functional lmao…if you say it out loud in plain speck it’s crazy nonsense lol

        • If no basic functions of money go ‘hand-in-hand’ with inflation, then governments sure do try awful hard to keep the optimal inflation rate for….??? Of course, they certainly don’t want out of control inflation, but they DO want a slow rate of inflation. Why is that? Maybe you can answer this sincere question?

          Nobody HAS to accept USD either, it just has the privilege of being the world’s reserve currency, because of our economic status and military power. However, the IMF’s basket of currencies is changing this, so the power of the USD is declining.

          • Dr. Bubó

            “the basic functions of money go hand in hand with inflation”

            “Nobody HAS to accept USD” wrong, every business in the US has to approve it.

          • You got me! Yes, businesses in the USA do have to accept USD as a legal tender, as does the government of course. Congratulations, sometimes i make a statement that is not *entirely* 100% accurate, in this case thinking more about our global economy than the internal US economy.

            Maybe you could elaborate on why Kenneth is wrong on inflation instead of just correcting who I was replying to.

          • Dr. Bubó

            The oil trade also denominated in USD. Russia wants to change that for more than a decade now, not an easy job.
            And world trade in general? USD is unavoidable. BTC? Nowhere.

          • “And world trade in general? USD is unavoidable. BTC? Nowhere.”

            There are no absolutes in the world. I receive international orders for my software in Bitcoin. Not predominately by any means, but ‘nowhere’ is an over-statement.

            You may have a little resentment from missing the latest run-up, which I have too, to a very large degree because I had to take out my BTC investments for about 30 days this year to buy our first home (at the time it was unclear if interest rates were about to skyrocket due to Trump), the exact 30 days they started shooting up, after a relatively stable prior year. And heck I was around years ago, missed the first big run-up too, because I thought surely the governments wouldn’t tolerate a competing ‘currency’.

            Makes me sick, but we can’t deny cryptocurrencies can, right now, be exchanged for ‘real money’ and so do hold value and have made many people millionaires. Now, I would much enjoy a TV series to see what these new-found millionaires are doing with their money (I imagine it’d be much like lottery winners ;p).

            Nation-state backed cryptocurrencies will come, sooner or later, as they offer too many advantages to deter money laundering, stop counterfeiting, and catch money launderers.

    • BTCD

      There has been roughly 165,000-180,000 tonnes of gold mined so far. Estimates of what is left in the ground, including what is considered to not be low hanging fruit, is around 20,000-30,000 tonnes. It is a limited supply the same as Bitcoin. This sounds like a lot of gold but all the gold mined so far can fit into a couple of olympic swimming pools. The U.S gold reserves stolen from the people during the 30’s is questionable. Audits have double counted, counted in imperial instead of troy ounces, Gold cases that have been sealed doesn’t actually get visually audited again “because it was audited and sealed. If the seal is not broken why would we visually audit or physically need to assay it”. Yeah…right. But it goes to my previous point that scarcity drives demand which influences value. Also, in a quick aside to sjs, you’re right that it is difficult to bring very much Au, Ag across borders because the “law” states we can only bring an amount <= $10,000.00. If someone were wanting to bring more than that for some strange reason and avoid the scrutiny involved in claiming the excess then D IF compressed C would do the trick as one the size of a large pea can go for $100,000.00 or more. I'm just playing devils advocate because of course you can transfer crypto more easily than any physical substance.

      • EXCEPT we can actually *create* gold now using nuclear reactors (starting with an isotope of Lead iirc), BUT it is more expensive than the gold created is worth (by far). Plus there is A LOT of Gold in the Sea, dunno if you accounted for that, otherwise your estimates of remaining gold would b higher?

      • Dr. Bubó

        The estimates range from 95k to 250k tonnes. Nobody knows. Not to mention asteroids and planets, which can be mined in a couple of decades. Gold not as scarce as people think. But it still the only substance what was used as money for thousands of years. Modern devices need more and more gold too, so we can’t really estimate the future supply and demand.
        And without that FED gold the US banking system would be insolvent.
        So it is deflationary, that’s the only reason why it is not used as money anymore. Because nobody so stupid to give it away.
        Bitcoin is much more scarce, and that is its death sentence as money. People invest in it but don’t spend it. So, it is an investment not money. Money is not supposed to an investment, money needs to be inflationary to make people to give it away. In this regard, USD works better than BTC.
        So I invest in BTC and gold (for now), and pay with government issued fiat. Thats the only way to go.

  • fturla

    Real fiat currencies are based on government control with each government arbitrarily deciding how much is available, who has access, who gets paid etc. whenever and how ever they want.
    Internet currencies are much more flexible and can be exactly like real currency or completely differently. A restricted blockchain crypto currency will always be apreciative rather than depreciative if the distribition, availablilty, and overall control of the asset class is limited or nonexistent.
    Yes there are many crytpocurrencies that will act and be exactly like all other fiat currencies that exist because they are controlled by a centralized force such as the Chinese government or other agency type entities that can manipulate the currency to their bidding. As an individual investor, consumer of coin, and miner of the asset each of us must decide which cryptocurrencies to support and use for our benefit. At this time the overall market is choosing to believe that Bitcoin and Ethereum are the best cryptocurrencies to use and invest in. The very fact that each has appreciated well over 1,000% and still climbing verifies in the immediate future that people will use those assets to trade, invest, and use for regular buying and selling and not simply to hold.

  • Byoon

    This article skips over the fact that BTC can easily be easily converted to a number of cryptocurrencies. ETH, XMR, DOGE, etc.

  • Jatin Ajwani

    Bitcoin is design to be store of value we have litecoin and many other crypto for use like fiat every crypto have spl feature like monero for anonymity

  • Rob Mancuso Jr.

    How else is a currency supposed to START to become relevant? Are businesses across the world supposed to just immediately cease pricing things in USD and switch to BTC just to START this process? His argument that, because things aren’t being widely priced in BTC NOW (which is questionable at best), means they will NEVER be, is flawed.

    This guy is a gold enthusiast and this argument is his rationalization of the early signals of success of BTC.

    The use of blanket claims like these, using words like “never,” instantly ruins credibility in my eyes. Sure, we don’t know that BTC will be a currency adopted worldwide, but this guy DEFINITELY doesn’t know that it will NOT be.

    And the part about ‘what if another currency comes that’s way better than BTC and then everyone wants that’ …. um, hello? There are hundreds of cryptocurrencies and one still has control over almost 50% of the market. There’s a clear collective preference here, and this guy is dismissing it way too quickly.

    Fine dude, stay the hell out of BTC, we’ll stay out of your gold warehouses that are probably worth as much as the USB stick in my change pocket.

  • John Kreutzer

    The point of crypto is for everyone to use it right? How in the world are you going to divvy up 21 million coins amongst 9 billion ppl ? Some ppl will have billions in coin some just .000000000000000000000001 BTC how that gonna work when you try to buy a cup of coffee? BTC Is only for the wealthy… NOTHING CHANGES JUST LIKE ANY OTHER FIAT

  • panskeptic

    Peter Schiff has been wrong at the top of his lungs for decades. He has predicted 29 of the last one financial collapses. He’ll never be right except by accident.

    Schiff is emotionally committed to gold, and resents bitcoin taking over from gold as the next generation’s vehicle of protest. Pay no attention.

  • Noah Olofsson

    I dont really agree on calling bitcoin a digital fiat currency, its not made out of thin air and there is only 21 million bitcoins to ever be made, im only speaking about BITCOIN and not other similar cryptos.
    Ive been thinking about a way to connect physical assets to a digital currency through ethereum and i really think it could work. Its just not the right time

  • Panda

    What a waste of life.

  • Terry Floyd

    I tried talking to Peter Schiff about bitcoin back in 2012 and he dismissed the whole idea as a pie-in-the-sky fantasy. He said neither he nor Euro-Pacific would ever consider dealing with cryptocurrencies when the focus of their entire business was on precious metals. He doesn’t seem to have changed his mind since then, despite all the evidence showing cryptocurrencies are the future of finance.

  • I still think Schiff is a moron. Great comments in here. Great examples of direct monetization and fungibility of cryptocurrency. Gold does not work like Schiff thinks and speaks in the USA. Some history for others; It used to work better than the US dollar prior to the 1934 Gold Act and just did not really rally back to wide spread use after President Ford rescinded executive order 6102. In order for Gold to work like Schiff wants, gold certificates and gold reserve notes need direct backing by a Gold Reserve. The last inspection of Fort Knox in 1974 took quite an arm twisting just to get a viewing by a few congressional members. So, I doubt the US Treasury would tackle accounting since they have no idea what public private ownership means. And, you would need a system crediting and debiting your account and the other accounts on the way to your vendor or service. There are Reserves and Mints around the world that do that but they lack the Privacy, Freedom, and widespread adoption you receive with Cryptocurrency. Not to mention the stack of papers and time it takes to secure a transaction in Gold. Gold is missing much of the technical values the Cryptocurrencies have and make them more valuable and much more usable. Plus, in 1980 gold was 2,000USD an ounce and slumped downhill to 365USD by year 2000. Most people who held Gold, died before they could see gold rise again. Then, rapidly gained back to 1,750USD in 2011 when the US agreed with most of the ECB evaluation methods for gold backed funds. I think you have to be born yesterday to not remember this History of Gold. Our, just totally blind to how the US Treasury bleeds the USA through inflation while Politicians keep expanding spending without a Budget. Schiff has to have lived in a cave for sometime. Gold has only had two big spikes in my lifetime and one dip that equaled 1947 at 365USD. The track record for Gold is not there, Schiff. Schiff if you put your gold up for sale between you and I, I know I would have to charge you a stiff percentage for the trouble it would be and you would probably reference our deal on an IRS form. IRS trouble will cost you extra. Cryptocurrency alleviates so much procedure and cost and in all cases is better than any FIAT or store of value at this time. Gold has not been stable nor have FIATs. If they had you would want for nothing more.

  • Smonte19

    Coming from a man whose predicted gold at $5000 an ounce for years..

  • If you look at gold i would say that it has a few uses but otherwise it is pretty useless and inconvenient. If you look at the history of gold from wars to mining and destruction it is not n pretty thing at all.If you give me the option to have gold or bitcoin i choose bitcoin!

  • Joel Joonatan Kaartinen

    Schiff’s comments are amusing to read if you try taking everything he says and substituting gold for where he says bitcoin. Nearly everything he says doesn’t sound off even with gold as the subject.

  • Why are so bearish on Ethereum, out of curiosity? Can you articulate that, or is a gut feeling? I won’t compare it to say MySpace and Facebook, but it *seems* superior to someone at the outset. Maybe it isn’t, but I would like some data on why it isn’t. Or are you speaking only of name recognition and acceptance? (of which BCC now has a new problem I guess)

  • Dimitri Andre

    If no one wants gold then gold will be worthless too….these goldbugs need to understand there no such thing as intrinsic value all is subjective value.

  • 1) “[Bitcoin] is the same concept. It’s being created but there is no
    real value in bitcoin it’s all based on faith. If somebody doesn’t want
    your bitcoin there’s nothing you can do with it right?”

    What if no one wants your gold, what an you do about it?

    2) Consensus for consideration is the foundation (what ‘backs’ a payment system) behind all the payment systems humans have evolved, gold is no different. The Gold standard and modern currency systems are both examples of payment systems just like bitcoin and the other digital P2P payment systems.

    3) We all know the gold bugs have spent decades investing in the return of the gold standard, so they will fight tooth & nail to save save that investment. Digital P2P payment systems are certainly a threat to that investment.

    What is gold backed by?

    If the answer is nothing then why is it ok for Gold to be backed by nothing?

    4) Payment systems aren’t long-term stores of value contrary to the contemporary polpular opinion (held mostly in the western world), they’re used to convey current perceptions of value between transacting parties, nothing more, nothing less.

    5) Stores of value are dynamic and adjust in lock step with value perceptions held by the market participants.

    6) I think it’s proper for there to be a market for payment systems, even though both the gold & bitcoin camps might not like it, as market participants are afforded greater protection in such a scenario.

    Many in the bitcoin crowd would like to see it being the only game in town, however, that wouldn’t be best for the market, now would it?

    7) Most cyber vendors curently price their wares exclusively in bitcoin, as more cyber vendors come online from markets/jurisdictions with more obscure currencies (other than Yen, Yuan, Pounds, Euros, Dollars, we’ll see more goods and services priced exclusively in bitcoin, then the notion or perception of bitcoin price volatility goes away. Ever wonder why we don’t here much about USD volatility?

  • galbraith

    I know Schiff and Keiser. Max launched a silver coin a long time ago and also a crypto token, the MAX coin.
    Schiff is a great gold bug too, but lack a profund view in crypto world.
    You should also consider Martin Prescott, a french canadian financial advisor, who turned bullish to crypto after years deniying any value to bitcoin.

    It seems to me that Schiff misunderstood totally the power of common people faith’s in crypto: things sometimes turns to that you want them to be.
    This is that one call ‘faith’ or ‘trust’.
    Schiff call this speculation and he may be right at an certain extend.
    But I am deepmly convinced that Bitcon’s fuel is faith in a true free money, unchained from crook government and greedy banksters.

    • BTCD

      Is crypto really “free money, unchained from ‘crooked’ government and greedy banksters”? It seems to me that the bigger Cryptos get the more government legislation/regulation/interference is occurring. There is news everyday of this country or that one imposing restrictions, etc on the exchanges, people who can invest in ICOs, China restricting miners, etc. The bankers have already tried to get their mits on the “value” of cryptos by setting up ETFs that trade strictly in cryptos. Crypto being “fueled by faith” is naive at best. There are many of the same people that are currently manipulating the crypto markets that currently manipulate and get richer off of the “classic” markets. These are people in the government, wall street, and the 1% elites of the world. To think otherwise is credulous and irresponsible. Most of the wealth in cryptos is held by the same people who have always had the wealth. Look at the exchanges and see the buy and sell books. Maybe you run in different circles than I but I cannot place a buy/sell order for millions of dollars. There are 18,391 bitcoin addresses that account for 63% of all bitcoins mined (yes, some of these are exchange cold storage accounts but not 18,391) so far out of millions of addresses. I am only counting the addresses that hold more than 100 bitcoins. This amounts to roughly 52B dollars of the current bitcoin market cap of 66B. That is being conservative as there are many people/institutions using many addresses that would cumulatively fall into the over 100 bitcoin category (my guesstimation would be another 10B). It is not joe the grocer, or betty the whatever purchasing everyday goods. This accounts for a VERY small percentage <0.1. The vast majority is speculation on the exchanges in the form of buy/sell/margin calls, etc. It is very wealthy, influential people, who will twist this great thing from revolutionary to the same-old, tralatitious, crooked evil crap from the same old crooked evil institutions, governments, people. Maybe I'm the naive one but everyday I see more of the freedoms erode and more of the same old bullsh*t ("chains" as you called it). I wish I had your "faith" in humanity but power, corruption, greed wins everytime. At least everytime that I can remember. I apologize if I'm being obtuse but I am just getting sicker about it all more and more everyday at the news that is coming out. Maybe I am just too old and jaded to believe (have "faith") that what you alluded to is what is "really" occurring. I am seeing the opposite happen. Started out years ago with a lot of promise but I see that "crypto utopia" turning into a "crypto dystopia". I mean look at the ICOs coming out. Some of them are just plain ridiculous but they are getting funded and those tokens/cryptos will disappear into the ether. Greed is taking over. AJIMHO

      • galbraith

        Free do not mean without laws and regulation. We are a social specie, not animals.
        Consider that property is liberty as stated by many intellectual, and property can not come without laws.
        Laws will also protect you from evil individuals or government, and that’s basically the purpose : laws are there to protect citizens

        Is it the case actually ? Of course not. But things moves on