On Sunday evening (Eastern Time), Bitcoin bull Anthony Pompliano (aka “Pomp”) and gold bull Peter Schiff had a long (1 hour and 40 minutes) passionate debate — live on Schiff’s YouTube channel — over the merits of Bitcoin and gold.
Here is a recap of the valid points made by the two debates.
Anthony Pompliano on Why Bitcoin Is a Better Asset Than Gold
- We have no idea what the maximum supply of Bitcoin is on Earth or in the universe; all we know is how much new gold is mined each year (which happens to be 2,500 to 3,000 tons) on Earth. In contrast, we know that there can never be more 21 million BTC.
- Even though gold may have just broken its all-time high (ATH), which was set in 2011, Bitcoin has done better than gold against USD so far in 2020 (+43.39% vs. + 27.22%), and vastly outperformed gold (and most other assets) over the past decade.
- Due to Bitcoin’s halving mechanism and the expected increase in demand (due to the continual debasement of fiat currencies), the price of Bitcoin is bound to continue to go up.
Peter Schiff on Why Gold Is a Better Asset Than Bitcoin
- Based on experience with mining, we know that gold is very scarce and that there is a finite amount of it on Earth (World Gold Council estimates that “197,576 tonnes of gold has been mined throughout history” and that the remaining reserves amount to “54,000 metric tons of gold in sufficient concentrations, and buried at sufficiently accessible depths, to be mined at reasonable cost”). As for any gold that might exist on other planet, Schiff says that there is no point talking about the whole universe since we live on Earth and the cost to mine gold elsewhere in the universe would be astronomical.
- Gold has real uses, such as for making computer chips and jewelry, unlike Bitcoin, and this is what gives it its intrinsic value.
- Gold is a more proven store of value (over thousands of years) thn Bitcoin (which has only been around for 11 years).
- The world’s central banks are expected to continue buying gold (as reserves for their national currency), which should support further increases in the price of gold.