Benzinga - Peter Schiff, a well-known economist and Bitcoin (CRYPTO: BTC) critic, recently expressed his views on the King Crypto in the context of AI giant Nvidia’s blockbuster run at the stock markets.
What Happened: On Tuesday, Schiff took to X, formerly Twitter to share his thoughts on the rise of Nvidia and its implications for Bitcoin. He pointed out that Nvidia, now the world’s most valuable company with a market cap of $3.34 trillion, contains a small amount of gold in each Graphic Processing Unit while containing no Bitcoin.
#Nvidia is now the world's most valuable company, with a market cap of $3.34 trillion, exceeding the GDP of all but 5 countries. Soon only the U.S. & China will have GDPs greater than $NVDA's market cap. Each NVDA GPU contains from .1 to .3 grams of #gold. They contain zero Sats.— Peter Schiff (@PeterSchiff) June 18, 2024
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“Yes Bitcoin needs gold. Gold does not need Bitcoin,” Schiff further stated in response to an X user, Wolf of Weimar, who pointed out that gold was needed as part of GPU mining to produce Bitcoins.
Schiff’s arguments were contested by a user with the pseudonym Perpetual_BTC, who asserted that an asset like Bitcoin shouldn’t have any industrial uses or applications.
“Because its ability to store value should not depend on the swings of the business cycle. Instead, this ability should be derived solely from its sound and incorruptible monetary policy,” the user explained.
Why It Matters: Schiff’s comments come in the wake of his recent criticisms of Bitcoin and its associated spot ETFs. He recently questioned the impact of these investment avenues on the price movement of Bitcoin, noting that despite buying from 11 spot ETFs, its price has remained stagnant for over three months.
Prior to that, Schiff had expressed concerns about the stability of Bitcoin’s market, attributing it to the potential influx of institutional ETF buyers.
Price Action: At the time of writing, Bitcoin was exchanging hands at $65,045.13, falling marginally by 0.08% in the last 24 hours, according to data from Benzinga Pro.
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