Can bitcoin replace gold as an inflation hedge?

Can bitcoin replace gold as an inflation hedge?
Can bitcoin replace gold as an inflation hedge?
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In a debate on YouTube, sponsored by ZeroHedge, well-known figures from the financial sector discussed whether bitcoin and gold are good hedges against inflation. Anthony Scaramucci of SkyBridge Capital and Peter Schiff, a well-known bitcoin critic, moderated the conversation. Erik Voorhees, CEO of ShapeShift, and Nouriel Roubini, an economics professor at NYU, also participated. At the heart of the debate was whether bitcoin can serve as well or better than gold as a reliable store of value during inflationary periods.

Peter Schiff criticizes the functionality of bitcoin

Peter Schiff opened the debate by criticizing the functionality of bitcoin as a currency. He pointed out the slow transaction speed and high fees, which he said hinder daily use. Schiff argued that bitcoin has been unfairly called “digital gold” because, unlike gold, it lacks tangible utility and intrinsic value, which he said is essential to retain value over the long term.

Anthony Scaramucci defends the potential of bitcoin

Anthony Scaramucci defended bitcoin by pointing to its fixed supply and potential for long-term storage of value, similar to gold. He acknowledged that gold has industrial uses, but these account for only a small part of its value. Bitcoin also has this property of being a store of value, he said, with added benefits such as portability and increasing adoption, which could strengthen its position over time.

Scaramucci also highlighted the unique characteristics of bitcoin as a digital asset. He described it as inherently deflationary, like gold, but with the advantage of being more mobile and transferable. He envisioned a future where bitcoin could be widely used in financial markets due to the growth in adoption.

Schiff and Scaramucci on the economic impact of digital currencies

In contrast to Scaramucci’s optimism, Schiff reiterated that bitcoin’s value is primarily speculative and it lacks the physical properties that give gold its lasting value and utility. This skepticism toward bitcoin is part of a broader distrust that some investors have toward digital currencies as viable long-term investments.

The article is in Dutch

Tags: bitcoin replace gold inflation hedge

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