When Bitcoin gets discussed as a store of value many of them are against it citing reasons of volatility; however, Schiff has to state that the real problem with Bitcoin is not Volatility.  It just looks like Peter feels that Bitcoin does not have an underlying value tangible or intangible speaking the reasons for its worth.  The more people accepting it as a store of value is one thing, but why would people agree upon Bitcoin as being valuable? What are the grounds on which Bitcoin can be considered valuable?

However, it is also important to know that a fiat currency is a national currency that is not pegged to the price of a commodity such as gold or silver. The value of fiat money is largely based on the public’s faith in the currency’s issuer, which is normally that country’s government or central bank.

Peter Schiff Shared: “The real problem with Bitcoin isn’t volatility. Volatility means Bitcoin can’t function as a currency, but it makes it very appealing to traders and speculators. The real problem is that Bitcoin has no underlying value to support its price, making a terminal collapse inevitable.”

Community Response:  I like your tweets. Whenever you come out with a tweet about Bitcoin, its price skyrockets soon after!

Schiff replied, “I don’t know about that. I’ve been tweeting about Bitcoin a lot lately and the price keeps falling. If there is a small bounce it’s just a better opportunity to sell.”

Peter Schiff has nothing else to say. I know your point – the price is just a price I agree with this. But the fact is every bottom you called for further down goes in the other direction.

What do the EUR and USD have then? It’s backed by air, “reserves” which people can’t see.

What do you mean by ‘underlying value’? The only valuable asset has is the value the market puts on it. If you mean it doesn’t have any other use case, that’s false. It is also used to move synthetic dollars across the world, for example.

You do know some assets are backed by cash, machinery, cash flow, and profits – real-world things, right?

And where do those things get their value from?

From nature. Water and oxygen are the most valuable things to humans. Value creates demand, supply creates price. No one needs crypto for anything, and the supply is infinite.

No value is created by supply and demand. You are talking about use.

You’re missing the important fact that it takes energy to create Bitcoin! It wasn’t created out of thin air like all government-controlled fiat. Large investments in mining equipment and energy are required to receive freshly mined BTC.

So why not waste these funds to create these conditions and why not put them into coin base wallets for ETH mining.

The next generation understands bitcoin, you do not.

You don’t understand bitcoin because you are too old – which wouldn’t be the problem as some other big investors of your age see the value. You are also stubborn and have technical knowledge of bitcoin.

Does the internet have underlying value? Does a URL? Bitcoin is a fungible, scarce, URL on a monetary internet.

Ok so I guess a terminal collapse is also inevitable with gold, but just, say, an 80% drop in purchasing power instead of 100%.

1 tiny country is turning to Bitcoin. Major central banks are stockpiling gold in a crazy inflationary environment. Why do you think this is happening? Gold=sound money.

If Bitcoin were to become irrelevant and fade away it would be reflected in the network, its hash rate, and its ability to transact. At nearly a trillion dollars it’s hard to make the case that it just disappears like the dinosaurs. When will you give up?

the real problem with gold is its utility value makes up about 5% of its total value. meaning when BTC takes it for the store of value there’s a 95% downside in gold.

And the dollar is backed by what?

By nothing and that’s a problem. Not a very good argument for Bitcoin to say: “Look dollar sucks too”.

If you don’t understand Bitcoin vs FIAT. No tweet will change your mind. But when people say the dollar sucks, they aren’t saying BITCOIN sucks. They are saying BITCOIN is financial freedom. The government doesn’t own it and they can’t keep printing more. BTC is finite.