Peter Schiff Admits Bitcoin’s Real-World Use Cases
Diehard gold bug and perennial crypto skeptic Peter Schiff may have inadvertently recognized several real-world applications of Bitcoin. In a tweet on Tuesday, Schiff critiqued the concept of Bitcoin exchange-traded funds (ETFs), arguing that they undermine the fundamental reasons for buying Bitcoin.
"It's no longer decentralized, it's not peer-to-peer, it's easily seized by authorities, can't be used as a currency for payments, or transferred across borders," Schiff stated about Bitcoin ETFs. "It's not your keys, not your coins."
In making this statement, Schiff unintentionally highlighted Bitcoin's key attributes, inviting a wave of agreement from Bitcoin supporters.
"If what Schiff says is true, Bitcoin might just be the best form of money the world has ever seen," commented Aubrey Jesseau, CEO of Beaver Bitcoin. Beaver Bitcoin is a non-custodial Bitcoin broker, meaning it delivers Bitcoin purchased by customers directly to their own wallets, ensuring they maintain control over their assets.
"As for the ETF? I agree with Pete," Jesseau continued. "It’s like taking a vacation in VR. You're better off with the real thing. Buy Bitcoin and hold it in a wallet you control. No exchange, no leverage, no yield scheme. Just the best-performing asset of all time in a digital vault only you can open."
Many Bitcoin enthusiasts praised Schiff for his newfound understanding.
"He’s learning," tweeted Peter McCormack, host of the What Bitcoin Did podcast. McCormack has frequently debated Schiff on his show about the merits of Bitcoin versus gold, though Schiff has steadfastly maintained his pro-gold stance.
Even Bloomberg analyst Eric Balchunas, a proponent of Bitcoin ETFs, agreed with Schiff’s perspective. "It's a fair point, but how is it any different than a gold ETF or a gold mutual fund? Should the motto be, ‘Not sitting in your own safe, not your gold’?"
Farside Investors, a firm that provides data on Bitcoin ETF flows, echoed Schiff’s points about Bitcoin's benefits, including its usability for payments and its censorship-resistant nature. However, the firm noted that not all investors need these features. Some investors may simply want to benefit from Bitcoin's price appreciation, which ETFs can facilitate within tax-advantaged accounts like a 401(k).
Schiff later clarified his position, acknowledging that ETF buyers have different objectives than traditional Bitcoin holders. "These buyers only care about price," he argued. "The goal is cashing out with profits. This shows the pyramid scheme will soon collapse."
