You can watch the interview here:
Gold prices are higher on Wednesday morning. The price of gold is trading at $2642.15, up $9.31. The price of silver is trading at $30.27, down 15 cents.
In a recent interview Peter Schiff and Robert Breedlove discuss the future use cases of Bitcoin and gold, the philosophy and economics behind money, and what it would take for each other to change their minds and renounce their preferred sound money.
The interview begins with a discussion on inflation, with the debaters agreeing that the state is the primary cause of inflation, which acts as a devastating tax on consumers. They argue that inflation not only causes prices to rise but also offsets the potential price decreases that would naturally occur in an efficient, free-market economy. This perspective emphasizes the hidden cost of inflation beyond just the visible price increases.
The debate then shifts to the origin of money, with Peter presenting the Austrian school of economics’ explanation. He argues that precious metals, particularly gold, became money due to their inherent value and useful properties. The conversation then moves to cryptocurrencies, with Peter contending that Bitcoin lacks uniqueness and may not survive long-term competition from other cryptocurrencies. He suggests that the current interest in Bitcoin is largely speculative, driven by investors hoping for price increases rather than believing in its function as a medium of exchange.
The debate also touches on the issue of counterparty risk, with Peter arguing that such risk is inherent in a market economy and that market forces tend to minimize its effects. Finally, Peter concludes by advocating for a return to the gold standard, arguing that modern technology enhances rather than diminishes gold’s monetary properties.
