American economist Peter Schiff and Jack Mallers, CEO of Strike, discussed the advantages and disadvantages that bitcoin (BTC) or gold can offer to protect people’s wealth. This in the face of an eventual collapse of the dollar, the currency that for years has maintained dominance as the world’s reserve currency.
Mallers and Schiff have different positions, as the CEO of Strikes is a defender of bitcoin, while the American economist prefers gold over digital assets. However, both They showed the same concerns about high inflation and the sovereign debt crisis facing the United States.
Assessing the future that awaits the United States, Schiff is emphatic in stating that any election, whether Donald Trump or Kamala Harris, will only worsen the inflationary crisis that the country already faces.
For the economist, the government’s fiscal maneuvers, along with the increase in social entitlements and deficits, will generate unsustainable pressure on the Federal Reserve, which could result in higher inflation.
Mallers, for his part, says that regardless of who wins the next US elections, what is coming is more money issuance because “it is the only way out for governments” to avoid financial collapse. And the greater the expansion of the money supply, the greater the devaluation of the dollar, he adds.
So in the face of this, the bitcoiner sees BTC as the “best money created in the history of mankind”This is because it is the most scarce and portable asset, with a fixed supply that makes it a refuge in times of economic uncertainty.
Schiff disagrees, arguing that bitcoin lacks intrinsic value and can be highly volatile, making it less reliable as a monetary asset.
Schiff therefore highlighted gold’s ability to serve as a medium of exchange throughout history and its robustness during economic crises.
As they show it the data In recent days, the price of a troy ounce of gold has reached its highest level: $2,500, bringing the price of a gold bar (which usually contains 400 troy ounces) to $1,000. reaches one million dollars for the first time in history.
However, as CriptoNoticias has reported, beyond the price correction that bitcoin has undergone, its performance continues to stand out compared to other assets in the last year. It has registered an increase in said period three times greater than that of gold and the S&P 500 (SPX).
Bitcoin in orange, outperforming other assets such as gold and SPX. Source: Tradingview.
Bitcoin vs gold: which is the best money to use in the face of the crisis?
Mallers then argued that gold, while performing remarkably, cannot match the fundamental properties of bitcoin, especially in a context of increasing digitalization.
“Bitcoin is also resistant to government censorship, which gold unfortunately is not. That’s why for me bitcoin has been the highest performing asset ever invented in the history of mankind and if you don’t want to take the numerical bias over the last decade bitcoin has an average annual return of about 60% and gold has an inflation-adjusted return of about 2% per year over that same period, so I think bitcoin is the best money.”
Jack Mallers, CEO of Strike.
Mallers and Schiff agree that the US economy is on the brink of collapse. Source: YouTube/David Lin.
Although Schiff acknowledged that “in some respects bitcoin is better than gold,” he continued to defend the golden metal.
“I don’t think bitcoin qualifies as money at all because money has to be the most tradable commodity and the commodity has to have value in itself and bitcoin has none. Bitcoin is used for exchange and you can speculate on it, you can buy it and maybe someone else will pay a higher price, but other than that, it’s not used for anything like money is.”
Peter Schiff, American economist.
Mallers then explained that gold, historically considered a safe haven, faces a fundamental challenge in its role as a medium of exchange in a globalized economy. This is because, by its physical nature, it limits, It is not effective in mass transactionssince it requires the intermediation of governments and centralized entities to facilitate the exchange.
Mallers added that while gold allowed for direct interactions between merchants and consumers in local economies, when it came to scaling those transactions to a global level, its limitations became apparent. Without a monetary system to back it up, gold lacks liquidity necessary to function as the backbone of a truly free market, which has led to its decline in the context of modern economies.
For this reason, he highlights that in contrast, the arrival of Bitcoin has revolutionized this dynamic by offering a decentralized alternative which allows fast and secure transactions without the need for intermediaries.
Mallers: «Bitcoin is valuable because it is decentralized»
Mallers added that bitcoin is presented as a scarce asset that, through its network, manages to facilitate transactional settlement for millions of people around the world. For him, this ability to operate without depending on governments or central institutions not only solves the shortcomings of gold in a globalized environment, but is also changing the perception of how we can conceptualize and carry out commerce in the digital age.
Thus, as Mallers sees it, as gold loses ground as an effective medium of exchange, Bitcoin positions itself as the contemporary solution for current economic needs.
And that’s how Mallers beat Schiff in the debate the two held earlier this week. From the Strike CEO’s point of view, the gold-promoting economist faces a personal dilemma that prevents him from recognizing the advantages of Bitcoin.
“Your lack of acceptance of Bitcoin reflects a reluctance to adapt to new technologies, similar to the need to test the effectiveness of email versus traditional mail.”
Jack Mallers, CEO of Strike.
In itself, the debate between Mallers and Schiff poses a challenge to those who, like Peter, require more evidence before accepting potential innovations, suggesting that technological evolution can be affected by personal biases in the perception of its validity.
Disclaimer: The views and opinions expressed in this article belong to the author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes only and does not constitute investment advice or financial advice under any circumstances.
