The main problem when you try to look at bitcoins versus gold, because people are saying, well, its just a new version of gold. For hundreds of years, maybe more, before gold was used as money it was already used, it was an acceptable highly coveted, valued commodity that people wanted. It eventually became used as money because it was a more manageable commodity than other commodities that were used as money in addition to gold. So gold just was the commodity that was best suited to also be money but it was first and foremost a commodity, a luxury good that was in demand all around the world.
The thing with bitcoin is nobody wanted bitcoin until it was invented for commerce. The sole purpose of bitcoin is to be used as money. But it does not have any value absent being a medium of exchange.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
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