There has been a hot debate in the Bitcoin community if Bitcoin is supposed to be used as a currency or a store of value, but these debates calmed down when Bitcoin community started arguing that Bitcoin was a far better store of value than gold. However, the news of a so-called “Midas rock” containing precious metals that could make everyone on Earth a billionaire has caught the attention of Bitcoiners. Peter Schiff, a gold enthusiast, voiced his opinion via his tweets.
“The existence of a golden asteroid is fake news– a lie spread to pump Bitcoin. 16 Psyche is a rare metallic asteroid with a composition similar to the earth’s core. It’s made almost entirely of an iron-nickel allow, with small amounts of other metals, likely to include gold.”
Gold, like Bitcoin, has one important feature that makes their price rise higher and higher, that is scarcity. Without scarcity, the price of either wouldn’t be as high as they are today.
According to the article by The Sun, the Midas rock is supposed to contain nickel, platinum, iron, gold, and other metals which are estimated at £8,000 quadrillion. Schiff, referring to this said that it was “fake news” and that Bitcoiners were using this news to spread FUD and pump the price of Bitcoin.
Whale Panda, an anonymous cast of Magical Crypto Conference, tweeted a similar tweet saying how gold will lose its value without the scarcity feature:
The day the gold bugs will learn the value of scarcity… and that's why Bitcoin should be in everyone's portfolio.https://t.co/6LpwxtHHuW pic.twitter.com/y5dCX2O8aT
— WhalePanda (@WhalePanda) June 28, 2019
Peter Schiff has always supported gold and said that Bitcoin will eventually fail on multiple occasions. In one instance Schiff used his “24K gold cufflinks” to describe how gold never loses its properties even after a 100 years. However, this attracted Bitcoin enthusiasts who trolled Schiff. The same can be said about the “Midas Rock” scenario; Twitter had its fair share of trolling Schiff.
Even if the “Midas Rock” did have the said amount of gold, with the lack of technology to mine asteroids efficiently, the discussion about “gold” feeling threatened by this rock seems like an over-reaction, and so does Peter Schiff’s concern expressed in his tweet.
Barry Silbert, a Bitcoin proponent well-known for launching the “DropGold” campaign, tweeted earlier today:
My new favorite pastime is triggering gold bugs
— Barry Silbert (@barrysilbert) June 29, 2019
A Twitter user @thesaltynarwhal, commented:
“make everybody billionaire” that’s when press will learn about supply, demand and their correlation with price”