Schiff, a gold defender, qualifies Bitcoin as trust money after comments from the Fed

2. July 2020

Economist, financial commentator and gold advocate Peter Schiff once again criticized Bitcoin in a tweet, essentially calling it fiat currency – the name of regional currencies, like the U.S. dollar.

“The Fed is right about Bitcoin,” Schiff said in a June 20 tweet, and added:

“It classifies it as fiduciary, in contrast to gold which has a real value. He sees nothing new in Bitcoin, only in the way it is exchanged. As confidence in traditional fiat and cryptomonetary money is lost, savers will return to gold.

Peter Schiff: The “fools” who believe in Bitcoin are wrong about its safe haven status

The U.S. Fed classified bitcoin as a trustee

In a June 18 posting, Liberty Street Economics, a blog under the purview of the Federal Reserve Bank of New York, postulated that Bitcoin and other crypto-currencies are simply cash in a different form, not a “new kind of money” as the crypto-currency industry claims.

The article pointed out the difference between money itself and the way people conduct transactions or use it. “The ability to conduct electronic exchanges without a trust part – a defining feature of Bitcoin – is radically new,” the publication said, adding:

“Bitcoin is not a new kind of money, it’s a new kind of exchange mechanism, and this kind of exchange mechanism can support a variety of forms of money, as well as other types of assets.

Peter Schiff predicts that gold will rise like the “moon,” and Bitcoin will crash
Peter Schiff often favors gold
After several comments on the subject, Peter Schiff has become known in cryptospace as someone who prefers gold over cryptomoney on any given day.

After attacking Bitcoin as a reserve of value on the tweet of February 25, 2020, Schiff said:

“Bitcoin has not existed long enough to prove anything other than P.T. Barnum correct. Every minute a fool is born and many of them own Bitcoin”.

In April 2020, the economist also projected rising gold prices and falling Bitcoin values in the coming years. He also called Bitcoin investors fools in March.