A topic with the cryptocurrencies is its quality of being new in the world, even when they were first created a decade ago. This generates uncertainty with respect to how they work, even what they are. A recurring theme occurs when people decide to compare them with traditional assets such as gold. On this occasion, we bring you the comments by Peter Schiff in this regard, particularly Bitcoin.
Contents
About Peter Schiff
Before anything else, you need to know about the character of Schiff, so that we will have a brief description of the character. It is basically an economist who specializes in the subject of financial investment, creating its own broker, Euro Pacific Capital Inc. In addition, we are interested in sharing their knowledge about the financial assets and the world of finance, participating in radio and active by his Twitter. It is notable, is not particularly enthusiastic of the crypto, but of gold.
Recent statements
By the recent events of Bitcoin, whereas its ups and downs, the topic has been of interest all over the world. For that reason, you can find debates, discussions, and comments on the situation. However, as it highlights Schiff, there is misinformation caused by improper handling of concepts, or false information. Therefore, Schiff decided to comment on the difference between the holders of Bitcoin and Gold, because that is not consistent with the current debate. Mainly, desacuerda with the idea of comparing these two types of holders, stating that the behavior of Bitcoin and Gold is completely different. Schiff highlights in the tweet that started a series of fights on the Internet.
Bitcoin hodlers won’t sell as they believe they’ll get rich when #Bitcoin moons. Bitcoin whales get rich by selling now to realize their paper gains before the market crash wipes them out. The whales must make sure the hodlers don’t lose faith and cash out so that they can cash in!— Peter Schiff (@PeterSchiff) October 29, 2019
This translates in the following quote from Schiff: “The holders of Bitcoin will not be sold because they believe it will be enriched with the moons of #Bitcoin. The whales of Bitcoin are enriched by selling now, to realize your profits on paper before a market collapse delete. The whales must make sure that the hodlers do not lose faith and retire to collect!” It can be seen that includes the whales of Bitcoin, being the largest holders of Bitcoin in the market and which responds to changes in the prices of Bitcoin. With this idea refers to with Bitcoin holders will not sell for by a rise in spontaneous prices, in fact, will continue to get greater value. Highlighting the idea of Schiff that the whales possess the interest that this behavior is maintained, thereby supporting the confidence of the holders of traditional. With this idea put forward, Schiff believes that in traditional assets, such as gold, would not happen this situation. Considering that in the case of gold, there is increased stability and institutionalization, claiming that a few “whales” would not have the monopoly of prices.
Reflection
We invite you to comment on their opinion of the differences between Bitcoin and Gold, as financial assets. The following two tabs change content below. I am a student of economics, interested in innovation and technological development, always faithful to that tomorrow will be a better day.