Bitcoin has had the ride of a lifetime this past week, and the investment community has taken note.
Fuelled by strong demand from China and general hype over the crypto-currency, the price of one bitcoin reached nearly $900 mid-week, compared with $12 just last year.
But the currency’s success has sparked a big debate over its actual value, and famed investor Peter Schiff has weighed in, publishing a video titled ‘Gold vs. Bitcoin’ on his YouTube channel on Thursday.
In the video, Schiff explains why Bitcoin is not “gold 2.0” but modern day alchemy.
“While I have a lot of sympathy with what the bitcoin community is trying to acheieve, I just think they have the wrong vehicle,” Schiff says.
“Bitcoins really replicate all of the properties of gold, even improving on some of them, but here’s the problem: They replicate all the properties except the single most important one: Value. Intrinsic value of the metal itself. Bitcoin doesn’t have any.”
Bitcoin vs. Gold as explained by Peter Schiff