Bitcoin is receiving attention from noted gold bug (seller) Peter Schiff. The self proclaimed Bitcoin hater garners plenty of attention for his moronic statements that show how little he really understands.
This, of course, should come as no surprise since Schiff potentially cost investors a ton of money by touting $5,000 gold in 2012 and saying to stay away from stock.
Peter Schiff: Gold to $5,000 in Two Years
https://www.cnbc.com/video/2012/10/25/peter-schiff-gold-to-5000-in-two-years.html
We all know how this worked out. While gold did run some, it did not even cross the $2,000 level while stocks took off. His calls about hyper-inflation have been wrong for the better part of a decade.
In spite of that track record, he keeps running his mouth. It looks like he will be equally wrong over the next ten years. Eventually, people will stop putting this guy on television but, in the meantime, we can use the amusement.
The simple fact in the investing world is to not look at things through your own eyes. The belief that most will see things the way you did is a mistake many make. Generations have different ideas.
For example, for those who are 50 years old and below, the concept of fiat backed by gold is completely foreign. To talk to people about those days is akin to discussing life in a log cabin house with no electricity. People simply cannot comprehend it.
The same is true for those under 25 when it comes to cash. Over the last few decades, the shift to credit and debit cards means that cash is rarely used. Therefore, the idea of a cash based system is alien to them. Once again, they simply cannot comprehend.
When it comes to an asset class, Peter Schiff ought to take notice that the Millennials are not gold bugs. According to surveys, they favor Bitcoin by a rate of 9 to 1 over gold. In short, they are going to pick up Bitcoin over gold.
Naturally, if we look at the idea of a digital world where we spend more time in the virtual, the idea of little yellow pieces of metal being the store of value gets a bit absurd. The newer generation simply looks at things vastly different.
Even noted Baby Boomer Robert Kiyosaki took notice.
“I think it’s important, especially for old guys like me, to understand the crypto world because that’s the world that’s coming into view right now and us real estate and gold guys are being phased out.”
https://www.cointelegraph.com/news/rich-dad-poor-dad-author-gold-guys-are-being-phased-out
Ultimately, the market has already proclaimed what Bitcoin is.
For all the arguments about being used for transactions, the truth is Bitcoin is the store of value according to wallet holders. Bitcoin is a speculation game and people are not going to spend it. Research into the percentage of wallets that have not moved any Bitcoin in years tells us exactly what the market thinks.
With institutions already dipping their toe in the Bitcoin water and banks buying it on the quiet, we know these entities are only concerned about one thing: return on investment. To them, Bitcoin is an asset class meant to be invested in like stocks.
The King of Asset Based Cryptocurrencies will likely see an enormous marketcap due to this view. Bitcoin is a financial instrument that most are betting will go up in price over time. It is the only reason for money to flow into BTC.
How important is the demographics factor in this equation? It is now estimated that Millennials will inherit around $68 trillion from their Baby Boomer parents by 2030. If these people are in Bitcoin's camp by a factor of 9-1, what does this say about the future of gold? In my mind, always follow the money.
Bitcoin will be every bit as large as the gold market. Over the next 10-15 years, Millennials will amass more capital than any other generation in history.
A great deal of this will find its way into Bitcoin.
If you found this article informative, please give an upvote and rehive.
gif by @doze
