Peter Schiff: China’s Gold-Backed Crypto Would Be Bearish for Bitcoin
Veteran gold bug named Peter Schiff claims that China launching a digital counterpart of the yuan backed by gold put Bitcoin (BTC) at a disadvantage.
Peter Schiff, disreputable for his pessimism when it comes to Bitcoin, tried to counter criticism of his stance by Keiser report host, Max Keiser in a tweeted:
Peter Schiff tells Keiser:
“According to @maxkeiser I am an idiot because I think #gold is better money than #Bitcoin”, he wrote.
Peter Schiff additionally repeated his off-quoted concept that Bitcoin has no intrinsic value:
“He also claims China is on the brink of launching a cryptocurrency backed by gold. This is often optimistic for gold and pessimistic for Bitcoin or in the Blockchain language Bullish for Gold and Bearish for Bitcoin. A crypto backed by gold is far higher than one backed by nothing!”
Having kept a markedly low profile on social media throughout October,Keiser failed to respond publicly.
Official hints at gold role
As reported by Cointelegraph, China seems to be advancing efforts to issue a digital currency in the wake of Libra;Facebook’s own token.
With an ex-Congress official suggesting it would come in the form of a peg to China’s gold reserve among other factors, its backing remains unsure.
In September 2017, Beijing outlawed cryptocurrency trading, a scenario that officially remains the same despite rumours that investors are using different on-ramps to gain access.
Recent China’s endorsement of blockchain technology in the meantime gave the impression to have a rapid positive impact on Bitcoin markets. Still,local media subsequently tempered the hype,advising citizens not to take the support as proof of a change of stance concerning cryptocurrency.