Bitcoin loyal and show your mutual gold devotees, who won in the end?
This week’s CNBC FastMoney show, financial commentator Blaine Kerrey? (BrianKelly) and gold supporters and economist Peter? Schiff (PeterSchiff) was a debate. Two financial experts made of bitcoin and gold which is the better investment options on bitcoin and gold investment value?
Since its birth, bitcoin has become a major problem of gold bugs. In the past few years, the economist Peter? Schiff (PeterSchiff) said on many occasions, bitcoin is of no practical value. But this time he and Blaine? Kerrey (BrianKelly) debate nor what new ideas, he still believes that bitcoin plush toys cheaper than.
However, CNBC Kelly has refuted his point of view, Kelly believes that the value of bitcoin is determined by its practicability, with the increase of the global bitcoin demand, its availability is also rising. Kelly said, like bitcoin, the value of gold from the subjective definition of human, in essence, gold is just a “light stone”.
Kelly: bitcoin is not only a figure of gold
In the FastMoney program, the financial market news team focused on bitcoin and gold investment advantages, and compares the characteristics of both.
Gold and bitcoin, which is a better choice?
The host asks in the program.
It is clear to me that, the answer is bitcoin.
Bitcoin is not only digital gold. I think this is most bitcoin misunderstanding. Bitcoin is a technology platform, is the foundation of finance technology. And the Internet, it is a generation of only a great investment opportunities, are in rapid development. I’m not the only one who holds a similar view.
In fact, many people have been involved in the Federal Reserve (FederalReserve) has just issued a report, and set up a working group; the Bank of England (BankofEngland) is also involved in the UK’s top 30 banks in the world, there are at least 14 of the block chain project; JP Morgan (JPMorgan), Goldman Sachs (GoldmanSachs) Chicago Mercantile Exchange (CME) and the New York Stock Exchange (NYSE) are involved in bitcoin bottom technology project.
Suppose we can give the hypothesis of bitcoin valuation, assuming that nothing has happened. Even if there are so many people began to study and create a case — assuming bitcoin is digital gold in the bitcoin platform, for some reason, it only accounted for 1% of the market share of gold, the price should be $4500, while the current price is $1200. If bitcoin accounted for 5%, the price is $22000. This is a successful investment for me.
Schiff: bitcoin is a digital fool’s gold
As usual, the gold bugs Schiff bitcoin supporters show the attitude of a panic. In fact, in the course of the debate, said Schiff Kelly of the digital money obsessed like a “cult”.
I agree, bitcoin is not digital gold, but digital fool’s gold. Now bitcoin is like Beanie (a plush toy). In essence, bitcoin is the currency attribute and characteristics of unique copy gold currency substitutes. But it cannot act as a true currency — I mean it’s just a medium of exchange, not a way of hedging.
At the same time, no one really think of bitcoin as a medium of exchange, just use it for speculation. People hold bitcoin is just because they think the future will become more valuable assets, but in fact it does not exist intrinsic value.
Kelly immediately refute his views:
The world has 150000 businesses to accept bitcoin payments, including the Addie faction. The average daily trading volume of bitcoin was 300 thousand.
However, Schiff does not believe that these businesses really accept digital currency. He said this is just a gimmick, in fact, these companies that accept bitcoin value of dollars or euros.
You’re wrong。 No business can accept bitcoin. They are just working with Bitpay this kind of company, actually received or $. No business can price their goods to bitcoin. This is not possible, is just a gimmick packaging.
People use bitcoin to circumvent the monetary law, the funds transferred Chinese. No one is using bitcoin in business. Why don’t you find a bitcoin price merchants come to me? They will only use the dollar or euro pricing. Bitcoin volatility is too large, can not be used in product pricing. Gold has intrinsic value before having a currency attribute.
Because of its special properties, people eager to get it. Scarce number of gold, the value is very high, because of the unique properties it is difficult to be copied. No one knows 5 years or 10 years after bitcoin is what. Maybe it doesn’t exist. It has no value, unless you use it for what.
“Gold just light stone”
Kelly said, bitcoin and gold have practicability.
Has the same value and gold coins. However, gold is just a stone, not what special value, but is light stone.
The number of digital currency is no limit. There are hundreds of digital currency on the market at present. Why didn’t people use Myspace (social networking sites)? Because there are already Facebook.
This debate again proves that Schiff will not bitcoin as an investment choice, especially compared with gold under the premise. Schiff has several times in the CNBC show that bitcoin is not worth a hair in his eyes. In 2013 when the currency price rise, Schiff said bitcoin is a bubble, “is a modern version of the tulip bubble”.
It is worth noting that the precious metals company Schiff from 2014 began to accept bitcoin to buy gold.
The attached CNBC tweeted the vote. They launched a vote by the program asked netizens think who won the debate. Obviously, bitcoin is won.