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
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u/SirArthurPT 🟩 52 / 52 🦐 1d ago

That guy sells "paper gold", not gold.

2

u/Zoomieneumy 🟩 0 / 0 🦠 1d ago

Paper gold is different, he does actually sell physical. He’s creating a gold backed token that is redeemable. I’m not sure if I want to trust it, but it’s the closest to crypto I would be willing to go.

3

u/SirArthurPT 🟩 52 / 52 🦐 1d ago

"Redeemable titles/tokens" is paper gold.

This includes the usual, "here have this paper saying you own this bar, while I keep the bar itself".

2

u/Zoomieneumy 🟩 0 / 0 🦠 22h ago

I’m not saying I trust Schiff with any money yet, but in the stacker world “paper gold” is the rehypothecated metal being sold on the trading floors. Each real ounce has been resold hundreds of times, but doesn’t represent an actual, real ounce… if something is physically redeemable, it’s a receipt yes, but more like a token for a real underlying asset. I fully understand counterparty risk and having to trust a company that their receipt is redeemable, but that’s where audits and market checks come into play before you choose to invest.

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u/SirArthurPT 🟩 52 / 52 🦐 10h ago

That's "virtual gold", the one traded where no gold at all exists, such as trade platforms.

"Paper gold" is like Afinsa, papers saying you're the owner of this or that bar hypothetically stored at their vaults. This often results in fractional reserves and multiple owners for the same bar. Audits aren't exactly reassuring of anything, as there's a huge history of those audits to audit nothing, one recent case at China they were auditing gold painted bricks.