Bitcoin

Elon Musk Fires Back Against Comment From Bitcoin Bear Peter Schiff

For years, Peter Schiff, an economist and investor, has been an ardent critic of Bitcoin.

Despite the recent wave of adoption Bitcoin experienced at the hand of institutional investors, Schiff is still very much against Bitcoin. Responding to a comment from Tesla CEO Elon Musk who this week wrote on Twitter that Bitcoin is "almost as BS as fiat money," Schiff said:

"According to @elonmusk 'Bitcoin is almost as BS as fiat money.' So Musk regards both #Bitcoin and fiat as BS. I agree, I just think Bitcoin, which is digital fiat, is even more BS than the paper fiat issued by central banks. #Gold is not BS."

In a response on Friday, Musk shot back at Schiff, criticizing gold and Schiff's stance on Bitcoin in relation to the precious metal:

"An email saying you have gold is not the same as having gold. You might as well have crypto."

The Tesla and SpaceX chief executive added that money, which he described as just a form of data, will evolve into a system which minimizes both "latency and error." In saying this, Musk is arguing that Bitcoin represents a form of money that is more convenient than gold.

That said, Musk followed up on his tweet around 45 minutes later, adding that "BTC & ETH do seem high lol."

Musk's latest comment in support of Bitcoin comes shortly after he said that Bitcoin is "simply a less dumb form of liquidity than cash."

He followed this up by adding that only a "fool wouldn't look elsewhere" than fiat money, which currently has a negative real interest rate due to the low rate on bonds and the relatively high rate of inflation.

On Friday, the executive also changed his Twitter profile picture to a Bitcoin-themed cartoon girl with "laser eyes," joining in on the latest meme on Bitcoin Twitter that has led an overwhelming number of high-profile accounts to add a #LaserRayUntil100K to their profile photos.


UPDATE (Saturday, Feb 20th, at 7:20 a.m. UTC): Added information about Musk's latest tweet noting that "BTC & ETH do seem high."

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Nick is a writer and analyst who has been following Bitcoin since 2013. When he is not writing, he works on HTC's Bitcoin phone, EXODUS.