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Peter was back at it again in Facebook land today. Let's dissect where his propaganda is wrong as usual:
- Max Keiser is smarter than Peter Schiff.
- The only point he was correct about was that a Chinese gold backed crypto would be bullish for gold and bearish for bitcoin. This trick of asset backed cryptos being better than bitcoin is going to always be a challenge with the older generation who do not understand the value of a digital asset.
- A Chinese gold backed crypto would not be better than bitcoin for a few reasons: Bitcoin doesn't need a peg, it defies that logic. Any pegged asset is subject to counterparty risk. We have already witnessed what governments do to gold backed paper currency; we can assume a digital currency peg would be no different. They will inflate it at some point, and unpeg it in the end.
- Bitcoin is not "backed by nothing." Bitcoin is backed by the payment network that allows you to send value in a decentralized, distributed way that is censorship resistant. It is extremely difficult to create, build, run, and maintain the software and hardware for this to be possible. It's backed by the developers and users who create value for the network.
Until next time, this is Deflating Peter Schiff!