Diehard gold bug and perennial crypto skeptic Peter Schiff may have accidentally just admitted that Bitcoin has not one, but several real-world use cases.
In a Tuesday tweet, the financial commentator argued that investing in Bitcoin exchange-traded funds (ETFs) defeats every reason for buying Bitcoin—of which there are several.
“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 said regarding Bitcoin ETFs. “It's not your keys, not your coins.”
In that one statement, Schiff invited an avalanche of mockery from Bitcoiners, many of whom wholeheartedly agreed with him.
“If what Schiff says is true, Bitcoin might just be the best form of money the world has ever seen,” said Aubrey Jesseau, CEO of Beaver Bitcoin, to Decrypt.
Peter Schiff spitting facts!
— Crypto Rover (@rovercrc) August 6, 2024
Jessau’s company is a non-custodial Bitcoin broker that delivers Bitcoin purchased by customers directly to a wallet they control. In other words, customers are required to have their own wallet to use the platform, encouraging them to avoid trusting a third party—like an exchange—with their Bitcoin.
“As for the ETF? I agree with Pete,” Jessau added. “I mean 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,” he continued. “Just the best-performing asset of all time in a digital vault only you can open.”
Many Bitcoiners said they were proud of Schiff for finally coming around.
“He’s learning,” tweeted Peter McCormack, host of the What Bitcoin Did podcast. McCormack has hosted Schiff on his show multiple times to debate the merits of Bitcoin versus gold, though his opponents have repeatedly failed to change his mind.
Bloomberg analyst Eric Balchunas, who has long touted the success of the Bitcoin ETFs, couldn’t help but agree.
“It's a fair point but how is it any different than a gold ETF or a gold mutual fund?” Balchunas asked. “Should the motto be, ‘Not sitting in your own safe, not your gold’?”
Farside Investors, a firm providing regular data on Bitcoin ETF flows, highlighted all of Schiff’s points about the benefits of real BTC, including its usability in payments and censorship-resistant nature.
“But if you don't require that yourself, you may want to benefit from Bitcoin price appreciation, due to those that do need those features,” the firm tweeted on Tuesday. ETFs are also credited with letting people effectively buy BTC within a tax-advantaged savings account, such as a 401(k).
Schiff later clarified that he was well aware of what ETF buyers want, but maintained that their objectives aren’t in line with the traditional Bitcoin holder.
“These buyers only care about price,” he argued. “The goal is cashing out with profits. This shows the pyramid scheme will soon collapse.”
Edited by Ryan Ozawa.