Bitcoin vs Gold: EPIC Debate Breakdown!

Bitcoin vs Gold Intro Bitcoin is scarce in the sense that there's 21 million of them but so what it's just a string of numbers there's nothing to look at you know there there's nothing that it does that's any different than all the other strings of numbers of all the other cryptocurrencies in fact there's 20 2.1 cadrillion Satoshi I mean there's enough Satoshi for everybody to have hundreds of thousands of them you can't do anything more with a Bitcoin than you can with a Satoshi which is which is nothing you were watching the presidential debate last night I was watching the Bitcoin versus gold debate between Jack MERS and Peter Schiff we not the same today we're going to go over some highlight clips from this epic debate we'll cover topics like Bitcoin priced in gold gold returns corrected for inflation has it really performed well the problems with inherent value is Bitcoin really scarce if it can be infinitely divided yes I'm serious whether Bitcoin can even be considered money today and finally did gold officially fail as money in 1971 let's get into it this past weekend David Lynn released a hotly anticipated debate between Jack merer CEO of Bitcoin company strike and Peter Schiff gold bug and prominent Bitcoin skeptic okay let's get right into it with some highlights and I'll provide some commentary on the back end Bitcoin Priced in Gold even though Bitcoin made a new uh nominal record high this year in dollars it never made a new high in Gold the the the high for Bitcoin priced in gold was still back in 2021 and we're more than 30% below that high now uh about 3 years later so I think the tide has already turned uh where Bitcoin is going to continuously lose value measured in the price in Gold if you were to zoom out that same chart David sure Bitcoin made a local high when priced in gold in late 2013 it entered a what Peter's calling a gold be Market all the way until 2017 where it hit smashing new highs that was a three-year gold bare Market Bitcoin was in it then made another smashing high in December of 2017 it remained in what Peter describes as a gold be market up until 2020 where it made new smashing highs and so now we're in what Peter's describing another gold bare market for another three years I I see no evidence as to why Bitcoin won't continue to smash and make new highs and then maybe some years down the road I'll be on a call just like this and Peter will say it will enter another gold bear Market you can't call an asset over a threeyear period such a short time frame a bare Market when over its history it's continuously outperformed gold over and over and over again to me that looks like adoption cycles that doesn't look like a bare Market I think for my case for Bitcoin in my opinion it's the best money in human history it's for very fundamental purposes of the properties that we want in a money for one it's the scarcest money in human history it's the only monetary asset of all time that has a fixed Supply it's the most portable asset of all time it's the only monetary asset that you can teleport over a Communications Channel like the Internet it's the most divisible asset of all time it can measure an asset that's the size of a grain of sand it can also measure assets the size of sports franchises it is infinitely divisible because it bites of data it's durable it's portable it's actually censorship resistant to governments and Central parties which gold unfortunately is not and so to me Bitcoin has been the most performing asset in in human history if you don't want to take the early number bias over the last decade Bitcoin has an average annual return of around 60% um gold has an inflation adjusted return of Gold Price Corrected for Inflation annually around 2% over that same duration so I think Bitcoin is better money I think money's compete over monetary policy and I expect Bitcoin to continue to do what it's already done so shift brings up that Bitcoin is down when priced in gold which is true but I think it's also important to note that the gold price when corrected for inflation hasn't even hit the highs it made in the early 1980s which I find just mindblowing gold is lauded as some perfect hedge against inflation yet it hasn't even been able to keep up with it over the last 40 plus years I will agree that of course Bitcoin price in gold is a much more accurate price signal than Bitcoin in USD gold is hard money and of course the US dollar is not and as we discussed in yesterday's video the Bitcoin price when adjusted for inflation is actually much lower than it is today the point is which jack points out is that Bitcoin historically Works in cycles and we are still currently in the recovery phase of the previous bear cycle so if history Rhymes at all we should expect new highs for Bitcoin pricing gold as well as USD in the next year to year and a half but of course only time will tell okay let's The Problem with Inherent Value get into the next clip which covers the infamous inherent value debate scarcity in it of itself doesn't mean anything I mean gold is not valuable because it's scarce I mean it has a high price because it's scarce but its value is not from its scarcity but from its properties as a metal right gold can do things uh that other metals and other material can't do and so there are a lot of places where gold is used uh because it adds a lot of value I can believe I'm arguing this with the Peter Schiff um all value is subjective David it's actually the fact that you can't chew your Bitcoin put it in a in a jewelry kit sponsor it in a music video is is a property it's a pro to the asset if listen if you had a money that had 10 total units and you were producing one unit per year so that's the stock to flow ratio the new Supply Dynamic let's just for example sake if you were to take half of that total Supply and you were to demonetize it and commercialize it and consume it that makes it a worse money because now the total money supply of that monetary good is now five still being produced at one per year so you don't want to be consuming your money you want the money to be used for monetary purposes money is the market good that you do on Peter I'll let you finish I'll let you finish money is the market good David that you do not consume you strictly acquire it only to save it and exchange it for things later it is not because gold is used in Peter's cuff links that gold is money gold is money because it's a hard asset that despite rampant demand finding new supply has been more difficult that's why silver was demonetized so it's all of his claims against Bitcoin are the same with gold again what's the confidence that someone will value Bitcoin tomorrow what's the confidence someone will value gold tomorrow gold is not used as a money because you can put it in cuff links gold is used as a money for the monetary properties I just went over you want in a money is the monetary good that's best at being money that's best at being the market good to both save your money through time your value through time and be able to exchange your value and money through space so this argument about inherent value gives all bitcoiners and Austrian Economist a splitting headache Jack really holds his own here and challenges the ridiculous claim that gold has value because of its industrial use cases if this was true the vast majority of Gold's market cap wouldn't be attributed to its monetary properties as a store of value value how much of the monetary premium of gold is placed on it as a store of value versus it as jewelry or components in electronics as jack points out value is subjective and is arrived at by the free market not by any magical inherent qualities money is not meant to be consumed but traded for things you value into the future Bitcoin represents unencumbered money as its only value is placed on its ability to be a good money Is Bitcoin Really Scarce? now let's move on to the most embarrassing part of the debate for shift Bitcoin is scarce in the sense that there's 21 Mill million of them but so what it's just a string of numbers there's nothing to look at you know there there's nothing that it does that's any different than all the other strings of numbers of all the other cryptocurrencies in fact there's 20 2.1 cadrillion Satoshi I mean there's enough Satoshi for everybody to have hundreds of thousands of them you can't do anything more with a Bitcoin than you can with a Satoshi which is which is nothing man shiff is a smart guy but I swear he drops 50 IQ points whenever he talks about Bitcoin this is totally embarrassing and I'm surprised Jack did laugh out loud here shiff is basically making the infinite Pizza debate which says Bitcoin isn't scarce because it can be infinitely divided he's basically saying you can take one large pizza divide it into millions of pieces and feed the entire planet Bitcoin is divisible but that doesn't change the fact that there is only 21 million whole Parts shockingly many prominent economists have also made this mistake so we'll excuse shift here for the brain Did Gold Fail as Money? fart this next clip is my favorite part and one which I think really encapsulates the debate of Bitcoin versus gold getting back to your idea that Bitcoin is the greatest money that's ever been invented I I don't think it qualifies as as money at all uh because money has to be the most marketable commodity uh and the commodity has to have value unto itself and Bitcoin has none uh Bitcoin is used uh to exchange and you could speculate on it you can buy it and maybe somebody else will pay a higher price but apart from that it's not used for anything the way money is supposed to be like gold is Peter um does a money need to be accepted at the store so if like Papa John's does not accept a certain asset would you then disqualify it as money which would mean money has to be acceptable as a medium of exchange yes okay so gold is is not money either gold is not being used as money today other than by central banks gold has been demonetized and it's mainly a commodity but you know it can be accepted I mean I would certainly accept gold just like you would probably accept Bitcoin uh but if somebody wanted to buy something from me and pay in Gold I'd be happy to take it but gold is not functioning as money right now even though it historically has been money we've had about the last 50 years where gold has not been money ever since 1971 uh when when Nixon you know closed the gold window but before that gold was acting as money because it was backing up the currencies that were circulating and what gave legitimate currency value was the gold the money that backed it up the real problem with gold is that unfortunately it has to centralize the problem is that gold can't achieve transaction finality without the help of a government or a central party meaning that when gold was operating in a local economy and you can exchange the physical coins with your direct counterpart for your butcher your local tailor your grosser whoever you were exchanging with gold was great when the world needed to scale an economy in the velocity of money larger than your local economy gold failed US Gold failed us because gold is just a bare physical metal it does not carry a monetary Network what's the gold Network the gold Network are human beings and when you're trying to transact in an economy of billions of people globally you are relying on Central parties Banks governments and it was for that reason that gold failed and it it failed in a way that you can't operate a truly free market when the concentrated Supply is with those that you have to trust and so that's fundamentally what Bitcoin solved is that you are able to create a scarce Bearer instrument and a network that can achieve finality in transactional settlement without the Reliance on any government or Central party that's really the core issue of why Gold's been demonetized since think on the points of Bitcoin like needing more history and it's young I mean I think that sounds like a personal problem for you Peter like that I I think you need more evidence and that's you being slow to recognize reality right like if you were to need the internet to prove that email is better than traditional male you would just be late to adopting better technology I love that mic drop moment where Jack catches Peter on gold not being used as money today what Jack says here is the Crux of the argument gold failed as money because it relies on uncorruptible humans it became centralized and the failure of human forces to keep an honest account of the centralized Holdings is what led to Fiat money in the first place in a world without the need to trust corruptible humans on a large scale gold would still exist as good money but we don't live in that world and we never will enter Bitcoin this is exactly what Bitcoin was created to solve it's the first Money free from counterparty and centralization risk we no longer need to trust the bank or the nation state that they hold the dollars or the gold that they say they do so although this debate Mutual Respect and Finding Common Ground did get heated at times I love the way the two showed mutual respect for each other and it really ended on a positive note yeah I would just end it by telling the audience I don't dislike gold at all I like gold and I like Peter I mean this this screenshot of this conversation is going right in my scrapbook like I said I grew up on uh on both your work really but you know Peter obviously I really respect uh the good fight you've been fighting let me just say one thing too to reiterate that I have the same respect for Jack um you know and I'm not saying this to be condescending but as a father you know I think that your parents did a great job uh in raising you so I I've got nothing but but but goodwi for you and I I really appreciate admire what you've been able to accomplish and I hope my kids can can be as successful I appreciate that man that means a lot love to see it no matter where you stand on this debate you got to find Common Ground And the fact is that bitcoiners and gold bugs are fighting the same fight and they agree on the main problem that our current monetary system is broken I also see this largely as a generational divide and the age of the two is a great illustration of this Bitcoin is Young and often misunderstood and underestimated by gold bugs and gold is often disrespected and dismissed by bitcoiners it's important to remember that we're both fighting the same fight against the evils of Fiat money and Central Banking both Bitcoin and gold are hard money and we can all agree that we need to move back to a hard money standard so let's not try to hurl insults at each other let's try to focus on the common ground because we're never going to convince each other through hate that's it for today make sure you check out the full debate so you can come to your own conclusions I'll leave the link in the description let me know what you think in the comments about this debate like this video if you made it this far and subscribe to the swan Bitcoin channel for more content like this thanks for watching Tik Tok next block