Gold is considered one of the most valuable elements on planet Earth. However, an argument about Bitcoin being the most valuable digital asset presently available can also be made. The digital asset has often been compared to the value of Gold, with the debate scaling new heights after Bitcoin outperformed Gold and several traditional assets during the course of 2019.
Peter Schiff, CEO of Euro Pacific Capital, recently held a discussion with Barry Silbert, where he suggested that the act of transferring Bitcoin was similar to an act of “transferring nothing.” He added that if Bitcoin was used on a massive scale worldwide, it would be impossible to maintain the network as it was “unaffordable.”
Schiff’s statement was picked up by the Bitcoin community, with many pointing out that his assumption might have been far from accurate.
Twitter user, @ArcaChemist, shared a tweet with a Long Hash report, suggesting a different scenario altogether. Citing the example of one of the world’s leading gold mining companies, the report highlighted that in 2017, Barrick Gold Corp mined an approx 5.3 million oz. of gold, requiring 92 million barrels of crude oil valued at over $87 billion. In comparison, the annual cost of mining Bitcoin was only $4.3 billion that year.
Another report shared by him mentioned that mining of Bitcoin promotes the usage of renewable energy at a rate of 76%, and that “mining tends to drive innovation to create cheaper energy.”
“The notion that Bitcoin is wasting unnecessary energy is false-Bitcoin is more often than not using surplus energy that is expanded whether or not it is put to use. Energy generators operate under peak capacity, meaning that there is often too much energy produced in case of a surge in energy demand.”
In response to Peter Schiff’s comment, Alex Kruger, Fundamental and Technical Analyst at Global Markets, stated,
“Bitcoin requires a continuous expenditure of electricity to validate every single transaction. Gold requires a continuous expenditure of fiat to pay for the bankers’ salaries to validate every single transaction.”
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