Bitcoin as a store of value has always been a controversial topic among traditional investors. Since its inception in 2009, many economists have openly criticized it, due to its association with illicit activities. Some have referred to it as a speculative bubble. A recent comment from a major Bitcoin antagonist, Peter Schiff, has attracted a lot of counter-remarks.
Former crypto disbeliever, Mark Cuban, responded to Schiff’s criticism of cryptocurrency. Cuban stated that “Ethereum and Bitcoin are empowering, but gold is dead.” Cuban, who recently identified with Bitcoin cautioned Schiff that gold won’t last as a store of value.
Let me help Peter. Gold is hyped as much as Crypto. Do we really need gold jewelry? Gold can make you a ring. BTC/Eth are technologies that can make you a banker, allow friction free exchange of value and are extensible into an unlimited range of biz and personal applications https://t.co/pJPdEAl5gq
— Mark Cuban (@mcuban) March 2, 2021
Despite the progress that BTC has made over the years, Schiff has held on to his status as a Bitcoin critic. He responded to the idea of some Wall Street companies buying Bitcoin as “dumb”. However, Cuban replied to the tweet by saying that “Gold is hyped as much as Crypto”.
He added that BTC and ETH can aid a frictionless transfer of value and be extended into several businesses. Indeed, the statement is true as Bitcoin has seen a myriad of use-cases over the years. Cuban also weighed in on the future of cryptocurrency.
Will Gold Continue as a Store of Value?
He stated further that tech will continuously get better, cheaper and faster but Gold won’t change. As a result, he said that Gold will die as a Store of Value. This is coming from someone who initially paid little attention to Bitcoin.
In a final comment, Cuban told Schiff to move on as Gold is dead. However, Schiff referred to cryptocurrency as a “malinvestment”. In response to the criticism, a trader tweeted that he had built a trading tool that relies just on Schiff’s social media activity. The tool would have had approx. 1000% return in a total of 203 trades since May.