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Highest price in history, standby value storage, BTC, cnbc, currency devaluation, digital gold, gray scale, inflation, institutional investor, Peter Schiff, listed company
Gold coin and Bitcoin opponent Peter Schiff said that the actions of the US government over the past 78 years are partly due to the sharp depreciation of the dollar. Schiff used the medical expenses in 1942 to illustrate the degree of depreciation of the dollar. He said that the 70 dollars paid to the podiatric hospital that year was equal to two ounces of gold.
In 1942, an ounce of gold sold for about US$35, but due to inflation and subsequent depreciation of the US dollar, the same ounce of gold now sells for more than US$1,750. Schiff used this metaphor to say that the same bill for seven days in a New York hospital in 1942 was equivalent to $3,700.
Nevertheless, even though Schiff correctly blamed the government’s inflation intervention for the depreciation of the dollar, Schiff still stubbornly refused to accept Bitcoin, just like gold, as an alternative store of value. Instead, the CEO of Euro Pacific Capital still believes that gold has a monopoly on value preservation.
On his December 11 tweetFree market proponent Schiff (Schiff) attacked reports that private and public companies are dumping their gold holdings in favor of Bitcoin. The Twitter post states:
The latest Bitcoin marketing technique is that many private and public companies are trading their gold and accumulating Bitcoin as their preferred store of value. The few companies that buy Bitcoin do not do so by selling gold.
Schiff had previously accused Grayscale and CNBC of conspiring to increase the price of Bitcoin, but he declared in a recent attack that “Bitcoin is not the new gold”.
However, despite repeated attacks from opponents, Bitcoin continues to be recognized by many institutional investors and billionaires. Since its launch 11 years ago, Bitcoin has performed better than many other assets, and in 2020 alone, digital gold has grown by more than 100%.
On the other hand, Schiff’s gold hit a record high of $2,074 in August, but it has appreciated by about 20% so far this year. Nevertheless, although Bitcoin clearly defeated gold, Schiff did not waver in his continued opposition to digital assets.
What do you think of Schiff’s remarks? Tell us what you think in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Twitter, Peter Schiff, gold price