Anthony Scaramucci and Peter Schiff debated which asset is better at escaping inflation. Peter Schiff again makes clear his stance and narrative against BTC.
Schiff and Scaramucci Debate Bitcoin vs Gold. Which is a better store of value to fight inflation? There seems to be no room for doubt. It depends on a personal perspective, as was made clear in the debate between analysts and economists, including bitcoiner Anthony Scaramucci and digital currency for Peter Schiff. The contest broadcast on YouTube also featured ShapeSchift CEO Erik Voorhees and Nouriel Roubini, professor of economics at New York University. Peter Schiff opened the debate and questioned Bitcoin to come to the defense of gold. “Bitcoin is not digital gold for the same reason that the digital image of a hamburger is not food.”
Bitcoin Doom
His stance is not surprising, as he has previously said he foresees a catastrophic collapse of Bitcoin, although his followers have already told him he has the wrong stance. Yet Schiff believes that gold is a better asset than bitcoin, as industries use it for jewelry and electronics, contrasting the practical utility lack of Bitcoin. In this sense, the gold maximalist argues that the physical asset is a store of value. In contrast, bitcoin value is based on speculative demand and does not reflect any inherent utility or practical applications.
Scaramucci responded to Schiff’s argument by highlighting that only 5% of the gold value derives from manufacturing purposes, with the majority attributed to its acceptance as a store of value. He stressed that Bitcoin has deflationary characteristics due to its fixed supply of 21 million. Scaramucci sees bitcoin as digital gold, highlighting its portability compared to physical gold. He also noted that bitcoin is following an adoption curve that will impact its value for decades, comparing it to the trajectory of tech stocks that became standard over time.
Inflation is the meeting point between bitcoiners and gold maximalists
Bitcoiners like Scarmucci and gold maximalists like Schiff may never agree on which asset is better at booking value. But what they do agree on is the fact that the dollar collapses and, as that happens, inflation rises indiscriminately.
“What happens is that the traditional monetary system is a mirage and, that is because the government prints money and, everyone pretends they will achieve success and wealth. It makes no sense for ‘s absurd for the government to print money and also feed the idea that people will become more prosperous that way.”
Erik Voorhees, Shapeshift CEO.
Considering how the U.S. economy deteriorates, Schiff sees it reasonable for banks to stockpile gold. “They should not look to Bitcoin because there is no guarantee that its price will go up. On the contrary, it may collapse because it has no real use,” the economist said. Voorhees immediately refuted Schiff by pointing out that Bitcoin does have utility. “For example, I can use it to send a million dollars to Europe in five minutes just by using my phone.”
On that, Roubini came out swinging by pointing out that you can also do that using Swift even though it takes longer, but with banks using KYC procedures. “Whereas the reason someone would use Bitcoin is because a criminal would send money to fund terrorism without anyone checking to make sure that’s OK.” That’s when Voorhees said he was dead wrong in his arguments because banks delay cross-border payments because they end up profiting from that practice which doesn’t favor users.
“On the other hand, I am a privacy and sovereignty-loving American, explain to me for what reason I would be inclined to use KYC beyond the fact of subjecting myself to central government oversight.” The analysts and economists went on to state their reasons why they believe, some that Bitcoin is better than gold and others pointing out the opposite.