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 this guy. Love him or hate him don’t spite yourself by shunning fundamental truths and principles he shares with us that have past the test of time.
But while his arguments are really convincing I don’t fully accept that his argument applies to the whole Bitcoin phenomeen and community. I am still a novice and I still have so much to learn but what I am starting to see is the existance of different camps within the Bitcoin community itself.
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 accumalated 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.
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 the grey hairs of Peter’s wisdom we look at the younger generation and sometimes even sarcastly say;
“Thats our future”
and that “future” is saying with growing conviction & momentum;
Bitcoin is our future!!
its almost seems as if they are jointly creating an invisible force of positive energy that could prove Einsteins theory in a whole new dimension, …..
the virtual one.
If a belief in something is so strong and continues to gain an ever increasing group of followers it can defy all basic logic and survive where under normal circumstances it should have failed.
But then you have this other group that could completely sabotage any possibility of that. For the sake of this blog I will call them the;
(they are actual Non-Believers or Atheist 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 Block Chain Technology 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 speculation of larger financial players that are purposely manipulating the price, supposed interest and market to undermine it. Unfortunately anything is possible.
I guess the long term future of Bitcoin is dependant on the ratio of these various groups within its community and it shows once again how ones worst enemy can come from within its own ranks.
I think Peter’s argument against Bitcoin applies more so to these two 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 actual 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.