Make Kitco Your Homepage

Mark Cuban says 'gold is dead' as Peter Schiff slams bitcoin as 'waste of energy'

Kitco News

(Kitco News) Billionaire Mark Cuban just joined the gold versus bitcoin debate, siding with crypto as he battled it out with bitcoin critic Peter Schiff on Twitter, saying: "Gold is dead Peter. Move on."

As gold prices drop towards $1,700 and bitcoin moves back up above $50,000, the gold versus crypto debate is not dying out.

In the latest Twitter-battle, Dallas Mavericks owner and Shark Tank star Cuban replied to Euro Pacific Capital CEO Peter Schiff's post that said: "When I first learned about #Bitcoin I didn't think smart investors would be dumb enough to buy. I was wrong."

Cuban took it upon himself to "help" Schiff understand, calling gold "dead" because "it will never change."

"Let me help Peter. Gold is hyped as much as Crypto. Do we really need gold jewelry? Gold can make you a ring. BTC/Eth are technologies that can make you a banker, allow friction free exchange of value and are extensible into an unlimited range of biz and personal applications," Cuban said.

Cuban went on: "What we are seeing built w/crypto today is just proof of concept. As tech continues to get better/cheaper/faster there will be new applications and maybe even something that supersedes what we know as crypto today. But Gold won't ever change. Which is why it will die as a SOV [store of value]."

He reminded Schiff that gold was built on technology as well, and those who were better equipped to extract it benefitted.

"From picks and shovels to mining operations that keep trying to improve. Whoever could use the tech of the day to find and mine the most efficiently was the most rewarded. Much like Crypto is today. Gold is dead Peter. Move on," Cuban tweeted.

However, Schiff remained unconvinced, replying that gold is a "highly useful metal" and "best money," while bitcoin is a "complete waste of energy."

"The difference is that mining #gold provides the world with a highly useful metal. Gold is the most useful metal on the periodic table. It also functions as the best money. On the other hand "mining" #Bitcoin, which amounts to solving math problems, is a compete waste of energy," he said.

Schiff pointed out that bitcoin is not replacing gold as a store of value. And as to why gold fell to nine-month lows recently, Schiff said investors are not buying the precious metal because they are not worried about inflation.

"#Gold falling and #Bitcoin rising in the face of massive money printing doesn't mean Bitcoin has replaced gold as the preferred store of value. In reality, investors are not buying gold because they're not worried about #inflation. They're confident the Fed has it under control," Schiff tweeted.

Cuban is not the only Shark Tank star to voice support for crypto this week. Chairman O'Shares ETFs Kevin O'Leary, who called bitcoin "garbage" two years ago, also announced this week that he is allocating 3% of his portfolio to bitcoin.

"Is #bitcoin a currency? Property? An asset? Maybe all of the above, I'm going with a 3% portfolio allocation and am looking at investing in miners that can create coin under a mandate of 0 carbon so sustainably!" he tweeted Monday.

In the meantime, Schiff is calling a peak in bitcoin's bubble, citing Cuban's and O'Leary's moves into crypto as a significant sign.

"Sharks @kevinolearytv and @mcuban are the newest Bitcoin skeptics to join the cult. Bubbles typically peak when rational investors capitulate," he said.

Schiff continued: "Initially, people made fun of me for not owning #Bitcoin. Now people are making fun of me for still owning #gold. This may indicate that the hysteria surrounding Bitcoin has finally reached a crescendo, and the rotation from fool's gold back to the real thing has already begun."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.