Gold bug and bitcoin opponent Peter Schiff says the U.S. government’s actions in the past 78 years are partly responsible for the massive depreciation of the U.S. dollar. Using a medical bill from 1942 to illustrate the extent of the dollar’s decline, Schiff says the $70 paid to foot hospital expenses that year was equal to two ounces of gold.
In 1942, an ounce of gold was sold for about $35 but due to inflation and the subsequent depreciation of the U.S. dollar, the same ounce now sells for above $1,750. Using this analogy, Schiff asserts that the same itemized bill for a seven-day stay in a New York hospital in 1942 would be equivalent to $3,700.
Nevertheless, despite correctly apportioning the blame for the dollar’s depreciation to government inflationary interventions, Schiff stubbornly refuses to accept that bitcoin, just like gold, is an alternative store of value. Instead, the CEO of Euro Pacific Capital still believes gold has a monopoly when it comes to value preservation.
Dumping Gold for Bitcoin
In his Dec. 11 tweet, Schiff, a proponent of free markets, attacks reports that private and public companies are offloading gold holdings in favor of bitcoin. The Twitter post states:
The latest bitcoin marketing gimmick is that lots of private and public companies are trading in their gold and accumulating bitcoin as their preferred store of value. Those few companies that are buying bitcoin did not do so by selling their gold.
Schiff, who has previously accused Grayscale and CNBC of conspiring to pump the price of bitcoin, ends his latest salvo with the claim that “bitcoin is not the new gold.”
However, despite repeated attacks by opponents, bitcoin continues to get endorsements from multiple institutional investors and billionaires. Since its launch 11 years ago, bitcoin has performed better than many other assets and in 2020 alone, the digital gold has grown by more than 100%.
On the other hand, Schiff’s gold, which peaked at an all-time high of $2,074 in August, has appreciated by about 20% so far this year. Still, despite bitcoin apparently beating gold, Schiff is unfazed as he continues his crusade against the digital asset.
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