This blog is purely based on my reaction to a ‘Kitco News’ interview I saw tonight with Peter Schiff, who is clearly a ‘Bitcoin Non Believer’, so why should the Crypto Community even bother listening to him?
Well because when it comes to investing in general, phenomenal knowledge and understanding of the whole world of macroeconomics you simply cannot afford to ignore Mr Schiff. Love him or hate him don’t spite yourself by shunning fundamental truths and principles he shares with us that have passed the test of time.
But while his arguments are really convincing I don’t fully accept that his arguments apply to the whole Bitcoin community. While I am speaking as a simple novice with still so much more to learn I am beginning to discern the existence of different camps within the community itself each with its own unique agenda.
You have the ‘long term’, ‘buy & hold’ type of investors that truly believe that Bitcoin will become;
‘‘The Peoples Free World Currency of the future’
They seem to be investing with a greater motivation towards saving and storing the value of their accumulated wealth rather than primarily focusing on acquiring extremely high returns. It has become an additional safe haven alternative to counteract fiat currencies diminishing value and buying power. They believe that the volatility will eventually stabilise itself and even if it does not immediately that volatility is still forming a long term upward trend.
You also have a large community of miners, developers, testers and newbies that are not only running, testing and developing various altcoins, but also personally investing in Bitcoin.
Based on my current understanding the ‘Alt Coins’ are the various business models and virtual industries and Bitcoin is the base player, the central exchange medium of value between them from which Alt Coins are indexed.
So momentarily ignoring Peter’s grey hairs of wisdom and looking at the younger generation, Peters generation (myself included) sometimes sarcastically say;
“Look, that’s our future that will be running our world and determining our fate”
and that “future” is saying with ever growing conviction and momentum;
Bitcoin is our future!!
it’s almost seems as if they are jointly creating an invisible energy force field that gives Einstein’s theory a new paradigm;
instead of that energy producing a tangible asset it produces an intangible one of tangible worth.
a virtual one.
If a belief in something persists and continues to gain strength thru an ever growing influx of followers it can defy all basic logic and succeed where under normal circumstances it should have failed.
But then you have these other groups that could completely sabotage any possibility of that success. For the sake of this blog I will call them the;
(they are actual Non-Believers or Atheists in disguise). They have absolutely no interest in some obscure future Utopian Free World of Equality and Fairness. They equally have no interest in the whole BlockChain research, development implementation movement.
They are purely motivated by short term gains. Buy & sell, get in and back out, before the whole virtual construction collapses into nuls & nuls (before and after the decimal point).
There is also a growing presence of larger financial players that equally have varying motives ranging from genuine belief in this product as a viable store of value (which would then exclude them from this group) to the purely speculative players and players (whales) that intentionally manipulate the market to either damage Bitcoins reputation or to scare retail investors into dumping their Bitcoin so that they can ‘buy the dips’ to sell of at the inevitable following bull run peak. While many embrace the growing interest and acceptance of these giant corporations into the space I personally fear it might negatively affect Bitcoins original simplicity, purity and accessibility to the common man on the street.
I guess the long term future of Bitcoin is dependent on the ratio of these various groups within the community and it shows once again how one’s worst enemy can come from within its own ranks.
I think Peter’s argument against Bitcoin applies more so to these latter groups.
He poses one very serious ethical question about Bitcoin that by doing so differentiates it from other asset classes such as precious metals and I guess even some ‘Alt coins’ that actually do serve an additional purpose other than just pure speculation, some of them actually solve real world problems.
Where do Bitcoins trading profits come from??
Peter Schiff: Bitcoin still going to ‘collapse’; ‘death spiral’ of inflation coming (Pt. 1/2)’ op YouTube
But I guess if I carry Peter’s argument through about intrinsic value is this really any different from Forex trading based on ‘Fiat currencies’ that were just printed the day before at the mint???
Once again my goal in writing is to stimulate, not influence, persuade or discourage. In fact I would love to hear your viewpoint and angle on Peters argument and your personal answer to this question.
Thank you for reading.