Bitcoin critic Peter Schiff has picked on the cryptocurrency again on the idea that Bitcoin’s value is based on blockchain. The gold bug is notoriously known in the crypto community for being an ardent criticizer of Bitcoin. Furthermore, he believes that its value is sure to diminish. Schiff became famous for correctly predicting the financial crisis of 2008, the reason why Satoshi created Bitcoin.
Peter Schiff Strikes Bitcoin Again
On Nov. 21, 2020, Schiff took to his Twitter to poke on the cryptocurrency that its value is based on the data validated and stored on the blockchain. He even pointed out that the whole consensus mechanism is nonsense.
Schiff compares the value of Bitcoin’s transaction data by citing the example of digging a hole to fill it up back again. He tries to mean that efforts on Bitcoin produce a value, that in the end will be worthless.
Meanwhile, Bruce Fenton of Chainstone Labs kind of agrees with the remark made by Schiff while mentioning that there are other factors that contribute to Bitcoin’s value.
Fenton clarifies to Schiff that Bitcoin’s value is based on the Proof-of-work consensus mechanism. He also emphasized that many altcoins could not be as valuable due to the failures of proof-of-work.
1/ That’s correct. The value of energy burned alone does not give Bitcoin value. This is why other proof of work coins are not as valuable as Bitcoin and many have failed entirely.
Proof of work is only part of the puzzle piece: it’s burned energy that shows skin in the game
— Bruce Fenton (@brucefenton) November 21, 2020
However, Fenton describes that if Bitcoin did work on the Proof-of-Stake consensus mechanism then that alone itself would not make Bitcoin to be valuable as it is today.
Schiff Prefers Gold Over Bitcoin
Schiff has always been a vocal critic of Bitcoin while believing that the world’s largest currency by market capitalization has no intrinsic value. He prefers gold to Bitcoin for he believes that the metal has more usage beyond pure speculation and a store of value.
Recently, Peter Schiff’s Euro Pacific Bank was accused of money laundering and evading paying taxes for its customers. Schiff however has denied all the accusations.