Peter Schiff is an American stock broker and he actually ended up losing to the ShapeShift CEO Erik Voorhees. This all went down during a huge debate and this happened at the Soho Forum on the 2nd of July. The two financial leaders had a huge debate about the top currencies around. They also talked about mass adoption and even blockchain as well. They discussed whether or not mass adoption is even possible and they also questioned Bitcoin in terms of how it compares to other currencies out there. Voorhees, who was the Bitcoin bull at the time stated that Bitcoin will become a substitute for any state backed money. He also came out to say that government backed structures would also be reorganised under blockchain technology. Voorhees however has argued that Bitcoin is actually very good for the money and that it is also able to provide a very good level of scarcity as well. He has also come out to say that the durability of it and even the fungibility is brilliant. He believes that Bitcoin will win because there is some level of competition in money and that Bitcoin is the best money available right now. He has also stated that because it is decentralised, it cannot be stopped in any way shape or form. Voorhees has noted that mass adoption will not happen right away and it won’t happen all at once either. Bitcoin will gradually become an occasional alternative to the Fiat.
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Schiff, who was defending Bitcoin in the bear position as a financial investor has argued that Bitcoin is not going to succeed in the future and that it will never become a substitute for fiat money. The main reason for this is because it is not actually backed by anything other than the confidence of the buyers. On top of this, there is often a lot of speculation about this. Schiff has also come out to say that the value of creating characteristics of precious metals or even assets is very important. He stated that the US dollar is backed by something solid such as gold and that this is what is allowed to accumulate trust over a set period of time. Schiff believes that gold doesn’t actually have to compete with any other asset and this includes bitcoin in general. He believes that Bitcoin is replicating all the properties of gold but it is lacking one very important feature. This is the fact that it is the metal itself. Schiff had a good argument for this, stating that gold is a very valuable element and it is all based on the fact that it is in rate and that there is no value in terms of it as a commodity. He went on to continue his argument as well, stating that the investor claimed that the fact that a lot of different currencies exist right now is a weakness over a strength. At the end of the day, there is only one gold and there will never be another gold ever created. There are other alternatives to Bitcoin however and this is what could cause problems. Now there are fifteen hundred other cryptocurrencies, and now there are probably way more than this. They can all do everything that Bitcoin can do and some of them are even faster and cheaper. There is no limit to the amount of currencies that can be created and this is what will cause major problems.
If you want to go into the future then you have to look at data from the past. The future of money is gold, and if you do not take this into account when you are planning out your investment then this can cause you real problems. The broker explained that if a currency was to be backed by gold or even by real money then this would mean that only one currency would be able to succeed. Schiff went on to argue with Voorhees, stating that there are a lot of weaknesses regarding the monetary system that is in place now. Her believes that it is not going to work. The investor on the other hand stated that Bitcoin is anything but an improvement. Another debate is that the Bitcoin supporter Tim Draper has stated that Bitcoin is actually bigger than the internet right now. He has also stated that it is way bigger than any other developments in human history. The debate went on to say that he has repeated himself, saying that eventually people will be buying cups of coffee with Bitcoin. If you were to buy this with fiat money then you would be laughed at. This just goes to show how confident he is in the future of Bitcoin and that there really is so much progress to be made.