For the last few years, bitcoiners and gold bugs have engaged in a digital battle to determine who is the king of fighting inflation. Is it the peer-to-peer decentralized cryptocurrency that spikes or plunges a couple of percentage points after each sip of coffee? Is it a precious metal that has been around for 5,000 years and utilized as currency by civilizations throughout history? As the warring factions duke it out on Twitter and in the global financial markets, they have forgotten about their common enemy: fiat money. This currency system is only supported by trust in the government or central bank. But who can trust the central bankers these days anyway?
Tulip Mania 2.0?
In the 17th century, tulip mania became the world's first economic bubble. Thanks to the coin debasement crisis and economic fallout from the plague, people thought they would make their fortune in tulips. After soaring to market capitalization equivalent of a mansion in Amsterdam at the time, tulips crashed and became a footnote in the history of speculative bubbles.
Is the same speculation transpiring in bitcoin as it continues to post fresh record highs?
Peter Schiff, the president and CEO of Euro Pacific Capital, has been one of the most outspoken critics of bitcoin. From his podcast to his writing, Schiff has warned that the virtual currency is in a bubble and that it would never overtake gold as a hedge against inflation. If you were to read the comments on his Twitter threads, hundreds of...