Schiff says Cuban will be used as exit liquidity.
In a tweet yesterday, Peter Schiff, a renowned gold bug and economist who predicted the 2008 financial crisis, slammed Mark Cuban for his support of Bitcoin over gold.
Schiff expressed the view that Cuban will be used as exit liquidity for those trying to opt out of the leading crypto asset. He also opined that the billionaire had a flawed understanding of gold.
“He proves that you don’t have to understand money to make it,” Schiff tweeted in a jab at the billionaire.
After #Bitcoin crashes I hope @mcuban does buy more as he told @billmaher he would. It'll give others an opportunity to sell. His lack of understanding of Bitcoin is only exceeded by his lack of understanding of #gold. He proves that you don't have to understand money to make it.
— Peter Schiff (@PeterSchiff) December 27, 2022
Schiff’s statements come as Cuban, speaking with Bill Maher on the Club Random podcast aired two days ago, championed Bitcoin as a better investment than gold. While conceding that gold was a store of value (like Bitcoin, in his view), he argued that it is not a “hedge against everything.” He added that ownership of gold is now digital, just like Bitcoin, pointing out the risks of holding physical gold if systems fail.
“You don’t own the gold bar, and if everything went to hell in a handbasket and you had a gold bar, you know what would happen?” Cuban asked rhetorically. “Someone would beat the f*** out of you or kill you and take your gold bar.”
Furthermore, the billionaire touted the transferability of crypto regardless of borders as an advantage over gold. Consequently, the billionaire wants the digital asset’s price to plummet further so that he can add to his bags.
“I want Bitcoin to go down a lot further so I can buy some more,” Cuban said.
Cuban said this even though Bitcoin has lost over 70% of its value compared to its all-time high formed in November last year in the face of economic tightening prompted by global inflation concerns. In contrast, the price of gold has remained mostly unchanged year-to-date.
Unlike Cuban, who has shown increasing support for cryptocurrencies like Bitcoin, Ethereum, and Dogecoin, Schiff remains convinced that crypto is worth nothing. The gold bug has routinely urged adopters to trade their Bitcoin for gold, often predicting doom for the largest cryptocurrency by market cap. In response to the miners’ capitulation in November, Schiff asserted that Bitcoin still “has a long way to fall.”