Recently, Elon Musk’s company, Tesla, purchased USD 1.5 billion worth of Bitcoin. Despite the fact that this move does not have a direct link between Elon Musk’s investments; yet, Musk has found himself under hot water with Peter Schiff. Peter Schiff is famously known for being a Bitcoin critic, alongside gold bull.
Since Elon Musk’s recent actions have shifted the narrative associated with cryptocurrency, and several companies have started to affiliate themselves with digital money, Peter Schiff was not too pleased. Hence, to reverse this narrative and provide his opinions on the matter, he posted a tweet quoting Musk’s previous claims, where he was critiquing Bitcoin and what it stands for. According to the tweet, fiat and digital currencies are mutually non-sense and should not replace the value of gold.
By quoting Musk’s previous opinions, Schiff wanted to get the point across that Bitcoin is essentially digital fiat. Implying how bitcoin is just as useless and dangerous as fiat and should not be invested in by companies across the globe. Moving forward, Schiff ventured on to the advantages of gold which, according to him, is better than Bitcoin and can be regarded as “real money”.
According to Schiff, Musk should be able to distinguish between tangible structures and simply a “string of numbers”. Implying that digital currency is essentially just numbers; while, gold has true value and can benefit businesses.
Nevertheless, Elon Musk did not hold back either and responded through a tweet. In the tweet, he stated that having digital currency is the same as obtaining an email that you have access to gold. This is because an email stating that fact does not mean the individual has the gold in their hands. Musk essentially provided information regarding the similarities between both forms of value. Through this, the criticism of digital money was debunked.
In addition to this, he stated that money is simply a form of data through which the inconvenience of carrying gold and barter is avoided. However, this data, much like other data, has room for errors and underdevelopment. Nevertheless, the evolution of the system over the coming years can minimize both of these factors holding back the digital currency. Thus, through this response, Elon Musk was able to defend Bitcoin from its famous critic, Peter Schiff.