Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

It’s a Phony Debate: Jim Rickards Weighs in on Bitcoin Vs. Gold

  by    0   0

Financial guru Jim Rickards weighed in on the Bitcoin vs. gold debate and came down firmly on the side of the yellow metal. In fact, he’s said there really shouldn’t be a debate. Bitcoin and gold are two totally different things.

Rickards responded to a recent note published by Goldman Sachs declaring that Bitcoin is not the new gold in a column published at the Daily Reckoning. He said he doesn’t really like talking about Bitcoin and doesn’t think there is any real comparison between the cryptocurrency and gold.

From my perspective, you might as well discuss gold versus watermelons or bicycles versus bitcoin. In other words, it’s a phony debate. I agree that gold and bitcoin are both forms of money, but they go their own ways. There’s no natural relationship between the two (what traders call a ‘basis’). The gold/bitcoin basis trade does not exist. But people love to discuss it, and I guess Goldman Sachs is no different.”

Goldman said gold wins out over cryptocurrencies in a majority of the key characteristics of money, noting that precious metals  are “neither a historic accident or a relic.”

Bitcoin has seen phenomenal growth this year. The price of the cryptocurrency broke through the $6,000 level this month. A lot of people have made a lot of money on Bitcoin. But Goldman pointed to several fundamental weaknesses it sees in cryptos that make gold a better long-term store of value, including their vulnerability to hacking, the potential for government regulation, and its dependence on the internet and the electric grid for their existence.

Rickards noted that Goldman Sachs hasn’t exactly been a friend of gold.

 The fact that they favor gold over bitcoin is highly revealing in more ways than one.”

Rickards acknowledged that Bitcoin has made some people multimillionaires, but said he doesn’t own any Bitcoin.

I don’t recommend it. My reasons have to do with bubble dynamics, potential for fraud, and the prospect of government intrusion.”

Many cryptocurrency apologists blow people like Rickards off as old fuddy-duddies who don’t understand the technology and who are unwilling to step into the future. Rickards addressed this argument head-on, saying he’s studied many Bitcoin and blockchain technology papers.

I will say, however, that I believe in the power of the technology platforms on which the cryptocurrencies are based … So although I am a bitcoin skeptic, I believe there is a great future for the blockchain technology behind them.”

Rickards closes out his piece with some pretty solid advice.

I’m not telling anyone not to own cryptocurrencies, but you need to do your homework before you do.”

At SchiffGold, we recommend a diversified approach to investing in Bitcoin. Buying gold and silver is a great way to diversify your cryptocurrency portfolio. You can even buy gold and silver with Bitcoin. In the world of investing, it’s never wise to put all of your eggs in one proverbial basket. Diversifying your cryptocurrency portfolio with precious metals can help mitigate some of the potential downsides and put you in an overall stronger financial position.

Bitcoin buy gold from SchiffGold

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Stagflation Warning: Atlanta Fed GDP Estimate at 0.5%

As governments shut down the economy in response to COVID-19 and the Federal Reserve put money printing into hyperdrive, we warned that it was a recipe for stagflation. Today, it looks like stagnation is here. Stagflation is an economic environment with rapidly rising prices, a weak labor market, and low GDP growth. It’s looking more […]

READ MORE →

Chinese Gold Demand Continues to Strengthen

Gold demand in China was up in September, as the country approaches a peak gold-buying season. Both gold withdrawals from the Shanghai Gold Exchange (SGE) in September and gold imports in August were up, a sign that the Chinese gold market continues to recover after it was hit hard by the coronavirus pandemic.

READ MORE →

JP Morgan Chase CEO Worried About Higher Than Expected Inflation

With CPI data once again coming in hotter than expected, it’s getting harder and harder for the mainstream to swallow the “transitory inflation” narrative. And some people are starting to worry. During an earnings call, JPMorgan Chase CEO Jamie Dimon expressed concerns about higher than expected and persistent inflation ahead.

READ MORE →

American Consumers Continue to Run up Credit Card Debt

Consumer borrowing has slowed somewhat from the record level we saw in June, but Americans continue to pile on the debt. Consumer debt grew by $14.4 billion in August to $4.35 trillion, according to the latest data from the Federal Reserve. That represents a 4% increase. This follows on the heels of a 4.8% increase in […]

READ MORE →

Demand for Silver in Electronics Sector Projected to Surge

The demand for silver is expected to expand along with the continued growth in global connectivity. According to a report released by the Silver Institute, silver demand in electronics and electrical applications is projected to rise by 10% by 2025.

READ MORE →

Comments are closed.

Call Now