U.Today – In response to a statement by a pro-Bitcoin investor, prominent critic and gold advocate Peter Schiff expressed his views on the cryptocurrency's lack of utility. Without Bitcoin, the investor stressed, people are missing out on a huge opportunity. Schiff responded to this by saying that Bitcoin is not as useful as resources like gold and oil, which are vital to the global economy.
In his defense of gold and oil, Schiff emphasizes their practical advantages. In the jewelry and electronics industries, among others, gold is used as a reliable store of value. In contrast, oil is essential for manufacturing, transportation, and energy. Since these resources are essential to the functioning of contemporary society, there is a constant need for them.
Schiff, on the other hand, argues that Bitcoin does not fulfill a practical need. Because of its fixed supply and lack of intrinsic utility, Bitcoin's value is primarily speculative and could plummet if demand declines. While Schiff raises legitimate concerns regarding Bitcoin's lack of inherent utility, there are still some benefits we should consider. With its decentralized financial access, Bitcoin offers a substitute for established banking systems, particularly in nations with unstable economies or repressive political regimes.
In these situations, Bitcoin serves as a safe haven for the storage and transfer of value, while also serving as a hedge against inflation. Additionally, Bitcoin has earned the title of “digital gold,” a valuable asset for people who want to diversify their investments beyond established financial assets.
In one way or another, both Bitcoin and Gold serve important functions for humanity, and it may not be right to compare them directly. Investors can choose the asset they need or are willing to expose themselves to.
This article was originally published on U.Today
