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HomeBitcoin NewsPeter Schiff: Crypto Only Works if It's Backed by Gold

Peter Schiff: Crypto Only Works if It’s Backed by Gold

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Peter Schiff is not entirely for crypto, nor is he entirely for gold. Rather, he’s for a combination of the two. In other words, the big financial answer to everybody’s problems is gold-backed crypto stationed on the blockchain.

Peter Schiff on Gold and Crypto

Schiff said in a recent interview that blockchain could make precious metals even stronger than they are presently. He’s not exactly a bitcoin fan, going so far as to say that bitcoin (by itself) is nothing but a Ponzi scheme. He stated boldly:

It will have a hard time even making a new high, and if it does make a new high, even getting to $100,000 is going to be a stretch, which only equates to four times your money.

He did, however, comment that he doesn’t think gold ever loses its value, and if it does, it’s during very rare occasions. He thus commented that crypto could work so long as it had gold supporting it. He said:

We don’t have to ignore blockchain technology. We can use it to improve the divisibility and the portability of gold and make it an even better monetary instrument than it was in the past… With the internet, with blockchain, there is a major improvement in the functionality of gold to act as a medium of exchange and as a unit of account.

During the conversation, Schiff also claimed that the gold standard has been in place since 1971 for a reason. He believes the world is on the brink of financial collapse and the U.S. dollar has been suffering for quite some time. He mentioned:

Gold was the legitimate currency which we had at one point, but fiat currency is backed by nothing. Bitcoin is also backed by nothing, and it is kind of like a fiat cryptocurrency, but if you have a cryptocurrency that is backed by something of value, such as gold, then you have something legitimate that I think could work. I think that is the future.

Even though bitcoin has been in high demand as of late due to inflation and other economic factors, he thinks this is a big mistake due to his belief that bitcoin (and many other cryptos) hold no inherent value. He stated:

The demand for bitcoin is based on the belief that you can sell it to somebody else at a higher price, and the only reason that the other person is willing to pay a higher price is because he believes that he can sell it to someone for an even higher price.

Don’t Invest too Much

He also issued a word of caution to whales, saying:

A lot of people that got into bitcoin years ago need to take some chips off the table. You can’t be overly exposed to bitcoin.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.

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