Bitcoin’s biggest detractor now accepting digital currency for his gold trading business



140212143855-bitcoin-cyber-attack-620xa

Peter Schiff, founder of Euro Pacific Precious Metals and host of the financial radio program The Peter Schiff Show, announced on May 21 that his company has started accepting Bitcoin payments for its gold and silver trading. Schiff’s decision to finally accept the altcurrency created by Satoshi Nakamoto in 2009 made many supporters of Bitcoin hopeful that Schiff would finally talk about digital currency under a more positive light.

In November 2013, Schiff appeared on CNBC’s show “Futures Now” and remarked that Bitcoin resembles the modern-day tulip mania — a period in the Dutch Golden Age where contract prices for bulbs of the newly-discovered tulip reached insane levels of prices and then suddenly collapsed. He further added that he doesn’t think Bitcoin has the potential to be a source of commerce for people.

 However, BitPay confirmed that it has formed a partnership with Schiff’s company. BitPay’s integration in Euro Pacific Precious Metals will allow investors to purchase gold and silver products using Bitcoin. When asked why he now accepts Bitcoin currency for his business, Schiff said that accepting Bitcoin doesn’t change his opinion about the digital currency and is just cashing in on its current demand.

“I haven’t changed my views. I still think that there is a bubble in Bitcoin, and I don’t think that we’ve seen the lows yet,” said Schiff. “For that very reason, I certainly want people who own Bitcoins to buy precious metals, which I see as a much more secure and reliable source of value.”

Long-time investors support gold over Bitcoin because the commodity has stood the test of many years as a medium of trade and a store of wealth. Many financial sites that give information on gold also aren’t sold yet on the idea of Bitcoin because it still needs to prove itself in time as a good alternative currency.
 In October 2011, Techinsidr.com advised readers to stay away from risky, speculative investments such as new digital currencies.

Schiff’s definitely skeptic of Bitcoin’s potential but he seemed to have entertained the idea of creating his own digital currency project. The only difference it will have with Bitcoin is that Schiff’s altcurrency will be backed up by gold, which is sort of similar to gold-backed ETFs. Schiff didn’t pursue it, however, since he is still uncertain about the process of trading altcoins and its future.

“I thought it would be very expensive to do it and I didn’t know how much money I could make, because I’d have to back it by gold and I couldn’t really mark it up that much.”


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Tech Insider Blog