- Peter Schiff says silver’s surge matters more than BTC’s rally due to real-world industrial use.
- Schiff claims Bitcoin’s gains are fueled by U.S. speculation, not global demand or adoption.
- BTC supporters argue its decentralized design provides long-term value beyond physical utility.
The debate over digital money versus precious metals is back. This time, Bitcoin’s new highs and silver’s surge have reignited criticism. On Monday, the silver surged past $39, its highest level since February 2012. Longtime gold advocate Peter Schiff responded swiftly. He argued that silver’s rise matters more to the real economy than Bitcoin’s latest all-time high.
Bitcoin reached a record $123,000 earlier this week. As of Tuesday morning, the price had corrected slightly, trading near $117,500. However, the rally received criticism from Schiff, who says Bitcoin’s gains stem from speculation and not real demand.
Schiff Doubles Down on Bitcoin Critique
Peter Schiff said treasury firms and short-term speculators now drive Bitcoin demand. He warned that the trend resembles a Ponzi scheme. According to him, centralized speculation undermines Bitcoin’s decentralized principles.
He also pointed out that Bitcoin reached new highs in U.S. dollars, not in euros or francs, saying those highs were hit in January. This, Schiff claims, reflects U.S. dollar weakness rather than global adoption. He contrasted this with silver’s industrial value, saying companies that need silver now have to pay more.
Schiff noted that Bitcoin has no inherent use, while silver powers sectors from electronics to solar panels. He also argued silver’s smaller market makes it undervalued compared to gold. He added that Bitcoin’s volatility and lack of backing remain critical flaws. His remarks follow a long history of Bitcoin skepticism. He has repeatedly questioned the digital currency’s role as a store of value.
Bitcoin’s Purpose Goes Beyond Demand Curves
While Schiff emphasizes utility, Bitcoin supporters highlight decentralization and economic freedom. Bitcoin operates on a universal network with a limit of 21 million coins. Its limited supply is the base of its attraction as a hedge against inflation and the instability of fiat currencies.
Bitcoin has also driven new trends in financial technology. These include Ethereum, DeFi, and token-based systems, such as NFTs. Moreover, Bitcoin has become a core holding in several corporate treasuries and ETFs. Currently, 265 entities hold Bitcoin, with 3.5 million BTC in various treasuries.
The rise in corporate adoption has fueled Bitcoin’s latest rally. Since June, public companies and ETFs have added hundreds of thousands of BTC to their reserves. Meanwhile, institutional demand for silver has also increased. Investors are seeking exposure to metals amid concerns about inflation and supply chain uncertainty. However, silver remains mainly an industrial metal. Its demand is linked to areas such as industry, energy, and healthcare.
By contrast, Bitcoin is becoming a monetary asset. Some investors compare its trend similar to gold in the 1970s. However, Bitcoin critics such as Schiff claim that the crypto has no history or intrinsic value compared to precious metals.
Related: Bitcoin Flips Amazon’s $2.3T, Satoshi Ranks 11th Richest Person
Different Assets, Different Use Cases
At its core, the debate centers on use case versus ideology. Silver is prized for real-world utility. Bitcoin is valued for its resistance to control. Schiff insists on tangible demand. Bitcoin’s community values code, security, and fixed issuance.
As silver reaches 14-year highs and Bitcoin trades around $120,000, the market appears to have room for both. Investors now weigh utility, ideology, and long-term vision. These assets serve different functions in a changing economy.
Critics continue to question the legitimacy of Bitcoin. But growing adoption suggests many believe its decentralized model has lasting value. Whether as digital gold or a hedge against financial risk, Bitcoin remains in the global conversation.
