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CEO of investment advisory firm Euro Pacific Capital, Peter Schiff said that the news of a massive 16 Psyche asteroid that contain abundant amounts of gold is ‘just nonsense’ propagated by the Bitcoin community.
A few days ago it was announced that beyond planet Earth, there exists a long-term prospect of the Main Asteroid Belt, which would provide a world’s great wealth. We are aware that this sounds like a crazy fairy tale but however since NASA was included with its Psyche mission, we decided to see what is really about.
What actually happened is that NASA went to explore the metal asteroid of the same name in the Main Belt hoping that it could also be a source of riches someday.
What makes Psyche 16 particularly interesting for the naive people was its almost pure, metallic composition. According to radar observations, the asteroid has been determined to be made up of mostly iron and nickel. Of course, some of the people said it’s pure gold and it turned around that it is fake news.
Lol. Guess it’s like buying a ‘collectible’ Captain Kirk mug on eBay only to find out there are another 20,000 for sale. pic.twitter.com/Y0qBFaD5rf
— Thomas Lee (@fundstrat) June 28, 2019
Among those sceptics is Peter Schiff, a CEO of investment advisory firm Euro Pacific Capital who claims it is a nonsense that this is even being propagated by the Bitcoin community in order to make the cryptocurrency more popular. He tweeted:
— Feelx (@feelxkg) June 30, 2019
Also, he explained that the supposed amount of gold and other precious metals on the asteroid is not based on science:
“It’s just BS, it’s not a scientific or economic story, and it’s just nonsense. It is being floated by the bitcoin community to try to create the false narrative that gold supply is not scarce so the price of gold is going to crash and that people should own bitcoin instead of gold because bitcoin is more scarce, because you’ll never find any bitcoin on the asteroid.”
For quite a few years, pro-Bitcoiners are trying to push BTC as an alternative to the United States Dollar and fiat.
EuroSun Mining’s Scott Moore first started a rumour that the various metals on this exact asteroid would be valued at over $8,000 quadrillion if mined in their entirety.
Let’s just add that the total gold’s total market capitalization can now be estimated around $8 trillion range.
Of course, the total stupidity of all figures that were mentioned in the article were clearly have been realized by experienced Bitcoin and crypto traders. One of them is a prominent trader and member of the star-studded podcast “Magical Crypto Friends” who works under the pseudonym WhalePanda who joked that now that this asteroid is public knowledge, “gold bugs will learn the value of scarcity.”
What Panda and others like have are referring to is the fact that if the asteroid and others like it are mined, gold would not be the store of value it once was.
On the other hand, unlike the gold, long held as a safe asset, Bitcoin has a mathematically-enforced supply cap – exactly 21 million tokens.
This asset’s supply curve can be predicted and cannot be changed, unlike gold itself. Mining of gold is determined by nature resources. Mining of crypto, on the other can – can variate by numbers. Some investors claim that value of the BTC will surpass gold.
Bare in mind that BTC is designed as a decentralized currency and in that way, it is and verifiable through the Internet. Also, you cannot confiscate BTC as gold.
We can just conclude that it’s sad and dangerous to have so many naive crypto community members that are dictating BTC price with their Tweet statuses. Let’s just hope that they’ll come to a sense and take their information from the Physics books (elementary school anyone?) that explains how gold is made – when stars explode and it is pretty much scattered in space in really, really small amounts.