Peter Schiff, a distinguished economist and avid supporter of gold, has shared his strong opinions about the role and relevance of Bitcoin in the current economic scenario. Schiff's comments suggest a strong disapproval of Bitcoin, calling it futile and drawing parallels between its supporters and a cult, bent on persuading others to invest in Bitcoin after doing so themselves.
Peter Schiff: 'Bitcoin Has No Value'
As the chief economist and global strategist at Europac, Schiff has shown a marked disdain for the perceived utility and scarcity of Bitcoin. In a recent post on a popular social media platform, he implied that Bitcoin serves no real purpose and likened its proponents to cult followers.
"No one needs Bitcoin. So people only buy it after someone else talks them into doing so. Then once they buy, they immediately try to convince others to buy too. It's like a cult," Schiff remarked.
His comments came in response to statements by Mike Novogratz, CEO of Galaxy Digital, on a popular television show. Novogratz spoke about the potential approval of a spot Bitcoin ETF this year and asserted that Bitcoin has always been a product that is sold, not bought, with institutions introducing people to it for the first time and explaining its concept.
Schiff has a history of expressing negative sentiments about Bitcoin and its economic value, branding it as a trick, a digital collectible token, and emphasizing its lack of desirability. He further stressed that there are numerous other ways to lose money aside from investing in Bitcoin.
Schiff's Stance on Bitcoin's Scarcity
Schiff further delved into the aspect of Bitcoin's scarcity, criticizing the currency's value based on this characteristic. Responding to a follower's comment that portrayed Bitcoin as "digital gold" and a "finite resource with unlimited fiat chasing," Schiff responded in a dismissive tone.
"Bitcoin is not a resource. It's nothing. There are also 2.1 quadrillion Sats. So there is plenty of nothings to go around," Schiff retorted.
Another user drew a comparison between Bitcoin and gold, noting that just like Bitcoin, gold too is sold rather than bought, and gold traders attempt to persuade others to buy. Schiff dismissed the comment, suggesting that the user had little knowledge about gold.
Yet another user pointed out that Bitcoin does hold value for people residing in areas with high inflation rates or those who lack access to a bank account. The user highlighted the dangers of owning gold in such circumstances and the impracticality of carrying it around.
What are your thoughts about Peter Schiff's perspective on Bitcoin and its functionality? We would love to hear your views.
Frequently Asked Questions
How much of your portfolio should be in precious metals?
Physical gold is the best investment to protect yourself against inflation. You can invest in precious metals to buy into their future value, and not just the current price. The value of your investment increases with rising prices.
You will be eligible for tax benefits if you keep your investments in place for at least five consecutive years. If you decide to sell your investments after that period, you will be subject to capital gains tax. If you want to learn more about how to buy gold coins, visit our website.
How Much of your IRA Should Be Made up of Precious Metals
Protect yourself against inflation by investing in precious metals like gold and silver. It's not just a way to save money for retirement.
Although gold and silver prices have risen significantly in the past few years they are still considered safe investments. They don't fluctuate quite as much like stocks. Plus, there's always a demand for these materials.
Gold and silver prices are usually stable and predictable. They are most likely to rise when the economy grows and fall during recessions. This makes them very valuable money-savers and long term investments.
Your total portfolio should be 10 percent in precious metals. You can increase this percentage if you want further diversification.
What is the best precious metal to invest in?
High returns on capital are possible with gold investments. It protects against inflation as well as other risks. As inflation worries increase, gold prices tend to rise.
It's a good idea for you to purchase futures gold. These contracts guarantee you will receive a certain amount of gold at a fixed price.
However, gold futures aren't suitable for everyone. Some prefer physical gold.
They can easily trade their gold with others. They can also sell it whenever they want.
Some people want to avoid paying tax on their gold. They buy gold directly from government to do this.
You will need to visit several post offices to complete this process. You will first need to convert any existing gold in coins or bars.
Then you will need a stamp to attach the coins or bars. Finally, send the coins or bars to the US Mint. There they will melt the coins or bars into new ones.
The original stamps are used to stamp the new coins and bars. They are therefore legal tender.
If you buy gold from the US Mint directly, you won’t have to pay tax.
Which precious metal would you prefer to invest in?
How does an IRA for gold and/or silver work?
An IRA for gold and/or silver allows you to invest without tax in precious metals such as silver and gold. People who want to diversify portfolios will find them attractive investments.
If you are older than 59 1/2, interest earned from these account does not attract income tax. On any appreciation in value of the account, you don't have to pay capital gain tax. You have to limit the amount you can deposit into this type account. The minimum amount is $10,000. If you are less than 59 1/2, you cannot invest. Maximum annual contribution is $5,000.
You may not receive the entire amount if you pass away before retirement. After all expenses have been paid, your estate must contain enough assets to cover any remaining balance in your account.
Some banks offer a silver and gold IRA option. Others require you open a regular broker account, through which shares or certificates can be purchased.
Can you make money from a gold IRA
To make money from an investment you must first understand how it works and secondly what products are available.
Trading is not a good idea if you don’t know what you need.
You should also find a broker who offers the best service for your account type.
You can choose from a variety of accounts, including Roth IRAs or standard IRAs.
If you have other investments such as bonds or stocks, you might also consider a rollover.
How to open a Precious Metal IRA
An IRA to hold precious metals can be opened by opening a Roth Individual Retirement Account (IRA) that is self-directed.
This type of account is superior to other types of IRAs in that you don't pay any taxes on the interest earned from your investments, until you withdraw them.
It is attractive for people who want to save money, but need a tax break.
You don't have to invest in silver or gold. You can invest in whatever you like, provided it conforms to IRS guidelines.
People often think of silver and gold when they hear “precious metal” but there are many other precious metals.
Some examples include palladium, platinum, rhodium, osmium, iridium, and ruthenium.
There are many ways that you can invest precious metals. The two most popular options include buying bullion coins and bars and purchasing shares of mining companies.
Bullion Coins and Bars
The easiest way to invest in precious materials is to buy bullion coins or bars. Bullion refers to physical ounces (or grams) of gold and/or silver.
When you buy bullion coins and bars, you receive actual pieces of the metal itself.
While you might not feel any change when you buy bullion coin bars or coins from a retailer, you will experience some benefits over time.
For example, you will get a tangible piece of history. Every coin and every bar has a unique story.
The face value of a coin will often be lower than its nominal worth. The American Eagle Silver Coin cost $1.00 an ounce in 1986 when it was first introduced. Today, however, the price of an American eagle is closer to $40.00 per ounce.
Bullion's price has risen dramatically since its inception, so many investors would rather invest in bullion coins than futures.
Another option for people who are interested in buying precious metals is to invest in shares of mining corporations. When you invest in mining companies, you are investing in the company's ability to produce gold and silver.
In return, you will receive dividends based on the company's profits. These dividends will then be paid out to shareholders.
Additionally, you will be able to take advantage of the company's potential growth. As the demand for the product grows, the company's share price should increase.
It is crucial to diversify your portfolio because these stocks are subject to price fluctuations. This is how you spread your risk across different companies.
It is important to keep in mind that mining companies can lose their financial investments just as stock markets investors.
If gold prices drop dramatically, your ownership share could be worthless.
The Bottom Line
Precious metals such as gold and silver provide a haven during economic uncertainty.
Silver and gold, however, can experience wild swings in their prices. If you're looking to make a long-term, profitable investment in precious metallics, then consider opening a precious precious metals IRA Account with a reputable business.
This way, you can take advantage of tax advantages while benefiting from owning physical assets.
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
Precious Metals Approved By the IRA
Whether you're looking to save for retirement or invest for your next business venture, IRA-approved precious metals make great investments. Many options are available that can diversify your portfolio while protecting against inflation. These include silver coins, gold bars, and silver coins.
Precious Metal Investment Products come in two main formats. Physical bullion products such as bars and coins are considered physical assets because they exist in tangible form. On the other hand, exchange-traded funds (ETFs) are financial instruments that track the price movements of an underlying asset, such as gold. ETFs can be purchased directly from the company issuing them, and trade in the same way as stocks on stock exchanges.
There are many types of precious metals that you can purchase. For jewelry and ornamentation, gold and silver are common. Platinum and palladium are associated more with luxury items. Palladium tends be more valuable than platinum which makes them ideal for industrial use. While silver can be used for industrial purposes, it is more commonly preferred for decorative purposes.
Because of the costs involved in mining and refining raw material, physical bullion products can be more costly. But, they are generally more secure than paper currencies and provide buyers greater security. In particular, when the U.S. dollar is less powerful than it once was, consumers might lose confidence in the currency. Contrary to this, physical bullion does not rely on trust among countries or between companies. Instead, they are backed up by central banks and governments giving customers peace-of-mind.
Demand and supply affect gold prices. When demand increases, the price rises; conversely, when supply exceeds demand, the price drops. Investors have the opportunity to profit by fluctuations in gold's price. These fluctuations are good for investors who have physical bullion products as they get a better return on their investment.
Contrary to traditional investments, precious metals can not be affected by economic recessions and interest rate changes. As long as the demand for gold remains strong, it will continue to rise. Because of this, precious metals are considered safe havens during times of uncertainty.
The most sought-after precious metals are:
- Gold – Gold is the oldest precious metal. Gold is also called “yellow-metal”. Although gold is a common household name, it is a very rare element found naturally underground. Most of the world’s gold reserves can be found in South Africa and Peru, Canada, Russia and China.
- Silver – Silver is the second most valuable precious metal after gold. Silver, like gold, is extracted from natural deposits. Silver, unlike gold, is often extracted from ore instead of rock formations. Silver is widely used in industry and commerce because of its durability, conductivity, malleability, and resistance to tarnishing. The United States makes more than 98% all of the global silver production.
- Platinum – The third most valuable precious metallic is platinum. It has many industrial uses, including catalytic converters, fuel cells, and high-end medical equipment. Platinum is also used in dentistry to make dental crowns, fillings, and bridges.
- Palladium: Palladium is the 4th most valuable precious metallic. Because of its strength as well as stability, its popularity is increasing rapidly among manufacturers. You can also use palladium in electronics, automotives, and military technology.
- Rhodium – Rhodium is fifth most valuable precious metal. Rhodium is a rare metal, but it is highly sought-after because of its use as a catalyst for automobile engines.
- Ruthenium – Ruthenium ranks sixth in the list of most valuable precious metals. While there are only limited supplies of platinum and palladium, ruthenium is plentiful. It is used in steelmaking, chemical manufacturing, and engine design.
- Iridium – Iridium is the seventh-most valuable precious metal. Iridium plays an important role in satellite technology. It is used in the construction of orbiting satellites that transmit TV signals and telephone calls.
- Osmium – Osmium is the eighth most valuable precious metal. Osmium can withstand extreme temperatures and is commonly used in nuclear reactors. Osmium can also be used in jewelry and medicine as well as cutting tools.
- Rhenium – Rhenium is the ninth most valuable precious metal. Rhenium is used in refining oil and gas, semiconductors, and rocketry.
- Iodine – Iodine is the tenth most valuable precious metal. Iodine is used in photography, radiography, and pharmaceuticals.
By: Sergio Goschenko
Title: Peter Schiff's Opinion on Bitcoin: A Detailed Analysis
Sourced From: news.bitcoin.com/peter-schiff-no-one-needs-bitcoin/
Published Date: Fri, 20 Oct 2023 08:00:45 +0000