Gold Silver Reports (GSR) – Bitcoin Debate’s Defeated Bear – The two financial thought leaders debated about the top cryptocurrency Bitcoin (BTC) and its underlying-technology blockchain, questioning the potential for mass adoption, and comparing Bitcoin and other cryptocurrencies with other asset types such as fiat money and gold.
Voorhees, the Bitcoin bull of the debate, claimed that Bitcoin will eventually become a substitute for statebacked money, while government structures would be reorganized using blockchain technology. Voorhees argues that Bitcoin is “supremely good money” praising its provable scarcity, divisibility, durability, fungibility, portability, and decentralized nature, stating
Voorhees noted that mass adoption will not happen right away or all at once, arguing Bitcoin will “simply, gradually come to be used as an occasional alternative to fiat.”
Defending Bitcoin bear position, gold investor and financial commentatorSchiff argued that Bitcoin is not going to succeed in the future and work as substitute for fiat money since it is not backed by anythingexcept the “confidence” of buyers, which is mostly driven by speculation.
Schiff spoke extensively on the valuecreating characteristics of precious metal assets, namely gold, arguing that the fact that the U.S. dollar was once backed by gold is what allowed it to accumulatetrust over time. Schiff argued that gold does not have to compete with any other asset, including Bitcoin, which is “replicating all of the properties of gold, except the most important one — the metal itself.” Schiff’s argument for why gold is valuable as an element is based on the fact that it is rate and “has been valued as a commodity for thousands of years.”
Schiff, like many gold advocates on Bitcoin, expressed concern about the fact that it is not possible to find out how muchBitcoin is worth in terms gold or any other physical commodity:
The stock broker explained that if a cryptocurrency were to be backed by gold, or “by real money,” then it would be the “only type of cryptocurrency that can succeed.”
Schiff, however, agreed with Voorhees about the weaknesses of the existing fiat monetary system, claiming that it is “not going to work.” However, the investor arguedthat Bitcoin “is not an improvement,” saying that it is still a “speculative asset” that people buy into in hopes of earning more fiat money. – Neal Bhai Reports (NBR)