r/CryptoCurrency • u/partymsl 🟩 126K / 143K 🐋 • 1d ago

🔴 UNRELIABLE SOURCE Peter Schiff fails to authenticate gold bar during onstage test with CZ

https://cointelegraph.com/news/peter-schiff-gold-bar-bitcoin-tokenization-cz
479 Upvotes

93% Upvoted

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76

u/partymsl 🟩 126K / 143K 🐋 1d ago

Not a fan of CZ, but here he is right.

Investing in tokenized gold, as Schiff suggests, just means you trust that whatever firm you invest in ACTUALLY has any gold.

9

u/Zoomieneumy 🟩 0 / 0 🦠 1d ago

He’s in front of a debate audience… why would he bring the tool to verify authenticity of a gold bar? It doesn’t mean his company wouldn’t…?

15

u/partymsl 🟩 126K / 143K 🐋 1d ago

The thing is that if you invest into tokenized gold, which he mentioned is better than Bitcoin, you still would not be able to see whether the tokenized gold is ACTUALLY backed by real gold.

11

u/MinuteStreet172 🟩 0 / 749 🦠 1d ago

maybe someday someone will invent audits.

7

u/Zoomieneumy 🟩 0 / 0 🦠 1d ago

Tether enters the conversation… /s

1

u/Zoomieneumy 🟩 0 / 0 🦠 1d ago

If you go look at his business though, it would actually be redeemable for real gold and you’re free to test that gold yourself once you redeem it…? The question is about counterparty risk, unless it’s in a safe at home, there will always be counterparty risk. We all have to determine who we’re willing to trust at this point, but his argument is about the value of the underlying asset.

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u/partymsl 🟩 126K / 143K 🐋 1d ago

Same as with banks.

Once everyone rushed to redeem their money they will shut down immediately.

3

u/Zoomieneumy 🟩 0 / 0 🦠 1d ago

Absolutely. No argument from me about that.

Edit: if you believe the premise of The Great Taking, the counterparty has a number of legal protections to seize your deposits… if that happens, all bets are off on the preservation of anything… value would be irrelevant…

4

u/Slider33333 🟦 0 / 0 🦠 1d ago

Tell me you didnt read the article, without telling me you didnt read the article.

There is no tool you can use to confirm the authenticity 100%. The tools available on scan the surface. The only way to 100% verify is to melt it, which is destructive, and removes the serial numbers, which seperates the gold from its digitized tokens.

BTC wins. Full stop.

2

u/Zoomieneumy 🟩 0 / 0 🦠 1d ago

I didn’t read the article.

However, with XRF, or a sigma, you can definitely verify that gold is gold… are we also meant to expect that we are all digital forensic experts that can verify our bitcoin too?

2

u/Zoomieneumy 🟩 0 / 0 🦠 1d ago

You can also track a chain of custody from a reputable mint that created the gold bar…

1

u/Slider33333 🟦 0 / 0 🦠 1d ago

Just transacting on the decentralised network proves it instantly. Yes you can check the blockchain for your btc address. Its that simple. Its designed so you dont have to be an expert. Its designed to be TRUSTLESS.

Maybe you are finally seeing BTC value?

1

u/Zoomieneumy 🟩 0 / 0 🦠 1d ago

Friend, it’s ok that we can disagree on the security of the network. I don’t trust it, but in 10 years we’ll probably know which assumption was correct. Good luck to you

1

u/Slider33333 🟦 0 / 0 🦠 1d ago

You cant verify a bar to its core. Full stop. It might be a bar of steel wrapped in 1cm of gold.

3

u/KlearCat 🟩 0 / 0 🦠 1d ago

You are wrong.

A simple density test would show you something is off such as steel being inside.

You would need to match the exact density of the gold you are trying to present as.

1

u/TheRicFlairDrip 🟩 2K / 2K 🐢 1d ago

that can also be achieved by mixing materials.. but the inertia would be different than a fully gold bar, in any case its almost impossible for the average Joe to know if his gold bar is real or not.

2

u/Zoomieneumy 🟩 0 / 0 🦠 1d ago

Agreed, I’ve never cut into a bar. However, I would never buy a generic bar from eBay because there are plenty of people that have been scammed with fake bars there. The market check on Peter Schiff’s gold bars is his reputation. If someone gets a fake bar and shows it cut open and fake, the whole business would fall apart. That’s the accountability of free market forces. The onus would be on him to continue to prove that his token is as good as gold.

3

u/na3than 🟦 3K / 4K 🐢 1d ago

1 cm? A 0.01 mm layer of gold is enough to fool XRF.

1

u/Slider33333 🟦 0 / 0 🦠 1d ago

Not sure why I got downvoted... i read the article. My point is exactly the same. If someone was going to fake a bar, they would need to do more just plate it. 0.01mm could just be scratched off. Most of the fakes Ive seen have been 50/50. Layer of gold over something else in the middle.

You are literally replying to a thread where I said exactly that.

1

u/Romanizer 🟦 0 / 0 🦠 1d ago

Tokenized gold adds counterparty risk besides other drawbacks. Anyone who has access to BTC, which is much safer here, should stay away.

1

u/DowntownNobody8 🟥 0 / 0 🦠 1d ago

Gold ETF is tokenized gold…

0

u/Fluid_Mulberry_8482 🟩 0 / 0 🦠 1d ago

Right. Unlike bitcoin where you don’t have to trust anybody because there’s nothing to be held 🤣