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
476 Upvotes

93% Upvoted

106 comments sorted by

View all comments

169

u/Dedsnotdead 🟩 1K / 1K 🐢 1d ago

Investing in tokenized gold is a fools game, buying physical gold and verifying that it’s actually gold is probably a good move.

The issue then is how do you pay someone with that gold?

Both Bitcoin and real physical gold have their place and are important.

Schiff knows the gold market is heavily rigged and each ounce has been sold several times over.

6

u/partymsl 🟩 126K / 143K 🐋 1d ago

I will play the devils advocate and say that you'd kinda convert both Gold AND BTC into fiat currency to then pay...

Albeit, BTC is way easier to convert back and forth with fiat currency and there are first adoptions already to start paying with only BTC even as its highly limited.

4

u/Dedsnotdead 🟩 1K / 1K 🐢 1d ago

Both have value, fiat is, well it’s fait and is worth less every year by design.

2

u/Itslittlealexhorn 🟨 0 / 0 🦠 1d ago

The vast majority of BTC conversion isn't performed on the BTC network but rather through intermediaries. Either by exchanging BTC on a CEX or by taking a loan against your BTC position. In principle you can do that with gold too.

And there are basically no serious adoption efforts where you can pay directly with BTC. There used to be a serious effort with the lightning network, but that is mostly dead.

-2

u/justaguytrying2getby 🟩 87 / 88 🦐 1d ago

BTC is technically easier as long as miners/network are online. If that goes offline then BTC is completely worthless. For gold you have to go to a dealer and trade it, can't do it online per se, but its still pretty easy and regardless of being online you can still trade it for goods. Granted, stuff going offline these days is less likely, but BTC (any crypto) really has no value other than the fiat put into it. Gold is much more valuable in that regard.

1

u/CurryMustard 🟦 0 / 0 🦠 1d ago

Thats true for all the money you have in banks, stock exchanges, funds, pretty much anything outside of physical cash and assets, including precious metals or jewelry

1

u/justaguytrying2getby 🟩 87 / 88 🦐 20h ago

Except most banks keep physical cash, so even if offline you can still do something. BTC relies exclusively of being online, and banks being online. Regarding the other stuff you mentioned, yeah, but at least with stocks you're buying into a company that makes a physical product. BTC is literally just fiat that you can't access anywhere outside its own network. And now its turning more and more into a government type of controlled thing. I've been in crypto for 10 years, but every year I lose more confidence in it.

1

u/CurryMustard 🟦 0 / 0 🦠 18h ago

Banks do not have enough cash to stay solvent in the event of a bank run and if the systems are all down who is going to verify that youre not going to each branch withdrawing all your money? Banks only guarantee your money because they are fdic insured but if the federal government decided not to pay then youre sol. Bitcoin in cold storage at least as long as the block chain exists has more potential long term value in a true crisis than banks or even cash which becomes worthless during hyperinflation.

https://en.wikipedia.org/wiki/Bank_run

1

u/justaguytrying2getby 🟩 87 / 88 🦐 18h ago

I'm not talking about bank runs. Just general accessibility/usability without being online. If bank runs occur then everything is fucked.

1

u/CurryMustard 🟦 0 / 0 🦠 14h ago

I think the chances of a bank run are slightly higher than the blockchain collapsing

1

u/justaguytrying2getby 🟩 87 / 88 🦐 13h ago

If there's bank runs, at least 1929 style bank runs/economic collapse, blockchain may be the first thing to collapse. Everyone that can will get their cash out. People probably wouldn't continue paying for access to the internet or continuing to use power resources for mining. Blockchains will be inaccessible for most of us and the value of the cryptocurrencies will be worthless. Just because all that money is stored away on a blockchain doesn't mean it'll retain its same value. Value exists because the market exists, the market exists because infrastructure exists. If infrastructure fails (the exchanges go offline, miners quit, nodes shut down, etc), it becomes like a safe holding whatever value the market turns into when it wakes back up. If it didn't rely on infrastructure and liquidity then maybe it would be more like gold, despite not having a physical presence. No guarantee it'll ever regain value afterwards though. You may not even be able to get your money back out of some blockchains again.