Today witnessed a heated debate between Anthony Pompliano, Morgan Creek Digital co-founder, and Peter Schiff, the renowned Bitcoin critic and gold bug, on “the Peter Schiff Show”. For nearly two hours, they argued over real gold or so-called digital gold, which one will be the right stuff.
The consensus was not achieved.
Nonetheless, both of them did considerately agree that the US dollar is currently being devalued and is probably down to an abyss.
Said Schiff: "We're printing forever. It’s zero percent forever. So now the bottom’s going to drop out of the dollar, I think gold's going to go through the roof. Gold can go to infinity because the dollar can go to zero."
The Bitcoin argument
According to Pompliano's response, owing to an average of 2,500 to 3,000 tons of gold mined annually, and even having no idea of the exact amount or its maximum supply on the planet, gold is likely a fool's bet. In converse, Bitcoin's supply is limited and demonstrable. Its emission is renowned, mathematically provable and cannot surpass 21 million coins.
Bitcoin is currently up more than 50% in 2020.
Crypto continues to be the best performing asset class in this economic recession.
Every investor needs to get off zero.
In addition, in spite of gold also breaking through an unprecedented high today, Bitcoin has outstripped the key precious metal in dynamic in the past decade, as Pompliano argued, since the beginning of the year, its value in US dollars has surged by 43.4% while gold by 27.2%.
At last, Pompliano pointed out, the recent halving of Bitcoin supply could probably result in demand, particularly during the depression of fiat currencies.
The gold argument
However, seemingly Pompliano encountered with its hard stone for his unstoppable Bitcoin for to Schiff. As the sturdy proponent of gold, Schiff pointed out that there are about 200,000 tons of gold produced in the world, although we can’t make sure how much is left, annual production does not exceed 1% on average.
Furthermore, according to Schiff, gold is different from Bitcoin due to its real uses in various industry, like it is used for the manufacturing of computer chips and jewelry. In addition, the precious metal has demonstrated itself as a means of preserving capital during the long history of human being, while Bitcoin has only been existed for 11 years.
Also he added the world's central banks will most probably continue to purchase gold as reserves owing to their familiarity of the asset, which will play a role of catalyst in further price growth.
During the show, Schiff also emphasized that October 2019 and February 2020, as the two of the last three times that Bitcoin rose above $10,000, witnessed it finally dropped by 38% and 63%. There was a similar case occurred in May, in which the pullback was 15%. Schiff was fully confident that the correction will show again this time, the only uncertainty is - how big?
"So, the question is, is the fourth time the charm for Bitcoin? It's put up or shut up for Bitcoin. It’s got to hold $10,000 now, don't you think?" Schiff asked.
It will be unsurprised that Pompliano believed differently.