Morgan Creek Digital CEO Anthony Pompliano says gold bug Peter Schiff will regret not investing in bitcoin.
The pair had an hour-long debate on CNBC about the merits of bitcoin and gold in the face of the coming global economic uncertainty.
Meanwhile, the top-ranked crypto continues to experience a sluggish summer as the price attempts to hold on to the $10,000 mark.
Bitcoin Cannot Replace Gold
Speaking during the debate Schiff declared that bitcoin would never be able to replace gold as the de facto store of wealth. Instead, Schiff espoused the well-worn bubble argument for bitcoin, saying “when you are in a bubble, you can’t see the bubble.”
For Schiff, BTC doesn’t come close to attaining gold’s standard because it has no value in itself. Commenting further, the gold-bug opined:
“Bitcoin has much more in common with a fiat currency than it does with gold, because gold’s value is derived from its physical properties that make it desirable and make it useful, whereas Bitcoin’s value is derived from the confidence that people are going to want it in the future even though it has no physical properties or any other properties you can use it for.”
Bitcoin Deniers Will Have Regrets in the Future
In response, Pompliano poked holes in Schiff’s commentary, highlighting a lack of understanding of digital technology. The Morgan Creek Digital chief likened bitcoin’s increasing network effect to that seen in tech companies like Google and Uber.
Pompliano also countered Schiff by identifying the complete certainty required for the gold-bug’s argument to hold water. For Pompliano, Schiff would have to be 100% correct in his assertions that bitcoin will not amount to anything.
In rounding up his points during the debate, Pompliano quipped:
“But if there is even a 1% chance that you could be wrong, the odds, given Bitcoin is an asymmetric asset, mean that you will be kicking yourself forever for having known about this, spent all your time doing this, getting berated on the internet and missed the opportunity.”
All Cryptos Aren’t the Same
Schiff did double-down on his anti-bitcoin stance, labeling all cryptos to be the same. According to Schiff, every single one of the over 2,000 cryptocurrencies currently in existence amount to the same value proposition — zero.
Many crypto proponents say only a handful of virtual assets will survive the imminent cryptocurrency mass extinction event. For these commentators, the market appears likely to follow a similar path to the dot-com bubble.
As previously reported by Blockonomi, Ripple executives are the latest crypto stakeholders to call for a more nuanced understanding of the industry. Writing to Congress, Ripple urged lawmakers not to paint the entire industry with the same brush.
In 2019, there has been a visible decoupling of bitcoin from the altcoin market as the dominance of the top-ranked crypto continues to grow. Some analysts, however, believe that altseason will resume once BTC bull fatigue sets in causing a halt to the bitcoin price rally.
Global Economy Heading for Another Recession
Both participants in the debate did share consonance on the global economic outlook. They, however, differed on which assets could serve as the perfect hedge against the uncertainty in the market.
The U.S. Federal Reserve on Tuesday (July 31, 2019) cut interest rates for the first time in ten years. Some commentators say the 0.25% rate slash which increases liquidity in the market is a precursor to more dovish monetary policies that would eventually culminate in another global financial crisis.
For bitcoin advocates, BTC remains the best insurance given its status as a non-correlated asset.
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