Community Trust ScoreVerified
The Bitcoin Mantra is to hold until the price goes as high as possible and to not sell if the price crashes to zero. In 2021, bitcoin crossed its previous all time high and there was so much of hype. Schiff feels that BTC supporters are going to pay their price for their trust in Bitcoin to get rich. Sarcastically, he states they are going to go broke with BTC.
However, our investors have been trained to buy when there is blood in the streets. And, they are not going to accept any kind of suggestions from anyone who is inspiring Doom for Bitcoin.
Peter Schiff Shared: Despite unprecedented hype in 2021, Bitcoin is off to its worst start to a calendar year ever in 2022. Yet the Bitcoin faithful remain unfazed by the carnage, as they have been conditioned to accept big drops as the price, they pay for getting rich. So, they’ll go broke instead!
Community Response: Buy when there’s blood in the streets Peter. Investing 101. Those who understand bitcoin are unfazed.
I don’t think that argument works for Bitcoin. Bitcoin went from $0 to $69000 in 13 years. Why would I buy gold? Bitcoin is digital gold. Grow up and understand who will be dying soon and who is going inherit that money? The young and most populated generation. You just got to live with it.
Do you believe it’s “digital gold”? Tell me what you can do with it besides selling it to other buyers. I don’t invest in gold, because I don’t know enough about supply and demand trends, so I treat it like other commodities. 50% of gold is used for jewellery, 10% is industrial.
The truth is, it is better than digital gold. It is the greatest Brand earth ever had, it is the way to have a digital property and you don’t have to ask somebody if you are allowed to buy it and no it is not digital gold it is better because it is a deflationary.
Fiat money is inflationary on purpose. I agree with you that central banks will “debase” the currency on purpose and that you shouldn’t hold your cash as cash for 70+ years because it will lose 90% of its value, mathematically. But cash is meant to be spent, not hoarded. Inflation is overall good for the economy.
There is nothing wrong with inflationary fiat money or inflationary gold, it is just a bad idea to hold it long-term as a store of value. Buy or borrow it if you need it to pay for something, don’t store it.
And bitcoin dropping 40% may also prove to be a bad store of money. I do not think in such short times, I saw drops bigger than 40%. The dollar drops 14% of purchasing power every year on average. Bitcoin is up more than 150% every year if you subtract this 14%.
That’s simply wrong. People are freaking out in the US because inflation has jumped up to 7%, which is very unusual. The CPI change hasn’t been anywhere near 14% in many decades.
If you are talking about other currencies besides the USD, like Nigeria’s for example, they are dealing with 14% or higher inflation, and that’s a real problem for those currencies. Venezuela is a special case of a completely broken currency (the most severe hyperinflation ever).
I don’t go to argue the 14% I brought up with you, it is not the point. It is about don’t hold cash. I never have my EUR longer than 1 day, then it’s used.
Nobody will ever use something that drops 40% in a month as a currency. It’s why over the last 12 years, it is still used practically nowhere.
Maybe it’s just age but I cannot get used to the emotions that are tied up in investments these days, make a negative comment about crypto, Tesla, and others that have fanatical ‘followers’ and you’re in trouble. Emotions are supposed to be kept out of trading and investing??
So, do you sell all your gold when the price tumbles?
Gold will never tumble like bitcoin. Because gold has REAL value. Bitcoin has none.
Gold without a doubt will have the last laugh. The reason many defend bitcoin so much is that they know in their hearts it’s a valueless token. They are in denial. All I can say, to that, is put on your big boy pants and be REAL. In the end, only fooling yourself.
How’s it valueless? The cost to mine one Bitcoin is many thousands of dollars, that is a real production cost. And there is a global market where prices are trading for $40k+, and have been trading above that level for many months over the past year. Gold is a poor man’s Bitcoin.
