Dear Mr. Schiff,
You have argued consistently that Bitcoin has no value, not just no intrinsic value, but no value at all. This perspective stems, I believe, from a misunderstanding of what constitutes value. The issue lies in your definition of value, which appears to exclude the unique qualities Bitcoin provides. These qualities are indeed valuable, and millions of people around the world already recognize and rely on them.
What is Value?
Value is not an inherent property of an object but a subjective concept. It arises from an asset’s ability to meet specific needs or solve problems. Gold’s value, for example, comes from its scarcity, durability, divisibility, and utility in industries and as jewelry. These qualities make gold a reliable store of value. Bitcoin’s value, by contrast, arises from its ability to perform functions that gold, fiat currency, or other assets cannot. To dismiss these functions as “not value” is to ignore the real-world needs they address.
Bitcoin’s Unique and Real Value
1. Censorship Resistance
Bitcoin enables individuals to transfer wealth globally without reliance on third parties such as banks or governments. This trustless and permissionless system provides a financial lifeline in situations where traditional systems fail or are weaponized. Consider individuals in authoritarian regimes, activists, or anyone needing uncensorable financial tools. For them, Bitcoin’s ability to bypass financial gatekeepers is invaluable.
Gold, for all its history, cannot meet this need. It requires intermediaries for transportation and verification, introducing vulnerabilities that Bitcoin avoids.
2. Portability and Global Access
Transporting significant wealth with gold is cumbersome, risky, and subject to confiscation. Bitcoin, by contrast, allows the transfer of vast sums globally with nothing more than a private key—something that can be stored in memory. This feature is not just convenient; it is a game-changer for refugees, expatriates, or anyone fleeing economic or political instability.
3. Fixed Supply and Inflation Resistance
Bitcoin’s supply is capped at 21 million coins, offering absolute scarcity. This makes it uniquely resistant to inflation—a problem that has plagued every fiat currency in history. While gold is also scarce, its supply is subject to discovery and mining advancements, making it less predictable over time. Bitcoin’s mathematically enforced scarcity is a powerful hedge against monetary debasement.
4. Transparency and Verifiability
Bitcoin’s blockchain allows anyone to verify ownership and transactions without trusting a third party. In contrast, much of the world’s gold supply is stored in vaults that require trust in custodians, with no guarantee against mismanagement or fraud. Bitcoin’s transparency eliminates this uncertainty.
5. Programmable Utility
Bitcoin is more than a store of value; it is programmable money. Features like multi-signature wallets, escrow, and smart contracts enable complex financial operations impossible with gold. This flexibility adds layers of utility that are essential for modern economies.
Peter Schiff’s Blind Spot
Your argument that Bitcoin has “no value” seems rooted in a rigid definition of value that prioritizes physical utility and tangible properties. However, value is ultimately determined by the needs it fulfills. For those who require financial sovereignty, portability, censorship resistance, or an inflation-proof asset, Bitcoin’s value is not theoretical; it is practical and transformative.
You might dismiss these properties because they do not align with your personal priorities or worldview. But the millions who use and rely on Bitcoin’s unique attributes demonstrate that these properties are indeed valuable. To claim otherwise is to dismiss their lived realities.
A New Paradigm of Value
Bitcoin does not compete with gold as a physical store of value; it complements it by addressing problems gold cannot solve. Both assets can coexist, serving different purposes for different users. Gold’s strengths lie in its physicality and history, while Bitcoin’s strengths lie in its digital nature and adaptability to the modern, globalized world.
Closing Thoughts
The value of Bitcoin lies not in what it is but in what it does. It solves problems that gold, fiat currencies, and other assets cannot address. To dismiss Bitcoin as having no value is to ignore its profound utility and the needs it fulfills for millions of people worldwide.
Mr. Schiff, I urge you to reconsider your definition of value. By broadening it to include the unique and transformative capabilities of Bitcoin, you might come to see that it does indeed have value—real, practical, and irreplaceable value.
Respectfully,
CryptoNotBlockchain
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