In contrast to the famous Muhammad Ali vs. George Foreman boxing match "Rumble in the Jungle," two of the most recognizable players in the cryptocurrency space faced off in a debate. The two outspoken boxers in this fight are Peter Schiff, a stockbroker and avid cryptocurrency skeptic who promotes gold as an investment class, and Richard Heart, the eccentric founder of HEX and PulseX.

The event was not unentertaining. Schiff began by clarifying his position on gold and how he sees it as part of a larger investment portfolio.

"Let's put gold in its proper context. I don't just care about gold," Schiff said in a YouTube video uploaded Feb. 24. "I'm an investment manager and I always or have always recommended that people hold 5-10% of their portfolio in gold, but the rest of the portfolio is in emerging assets, companies that I think have good fundamentals, growing earnings and paying dividends."

Peter Schiff, Golden Boy

Schiff goes on to add that holding gold liquidity is preferable to holding fiat currencies, especially in an inflationary environment. Boiling the argument down to simple terms, Schiff argues that gold is more important than fiat and cryptocurrencies, but not necessarily better than traditional stocks.

"I like gold as an alternative to the dollar, as an alternative to the euro, the yen and any fiat currency," Schiff said.

This argument was met with rude disdain by Richard Hart, who replied, "Everything he just said is stupid. This is going to be a very light-hearted debate. For those of you who were hoping for something very exciting, I'm sorry. He just crushed his own argument in the first minute. I'm debating with someone who owns 10 to 20 times more non-gold items than gold because he knows they are better assets. He said that over time, gold will retain its value, but that's not the case."

Heart then showed a K-line chart showing the price of gold against the dollar, adjusted for inflation from 1980 to the present.

"This is an inflation-adjusted K-line chart of gold, and you lost money for 40 years. 40 years – you lost money. 40. If you bought gold 10 years ago – you failed today You lost money from 10 years ago, not even adjusted for inflation."

20220301-96.png.webp Richard Heart (center) debates with Peter Schiff (top left)

Mr. Vanity knows what he wants

Dressed like upholstery and DAI'd in his trademark gold swag, Heart goes on a rampage against Schiff. Flipping through his prepared printout, Heart fails to find the key HEX K-line chart that supports his argument, but what this onslaught lacks in precise perfection, it makes up for in sheer devastating brutality.

"I understand what gold is used for, and gold is used for jewelry, which accounts for 50 percent of its market value …… what is jewelry – it's just vanity," Heart added.

Heart went on to add that people can trade bitcoin for gold, and that Schiff's own company accepts bitcoin for gold, proving that Schiff accepts the true value of bitcoin. The line of argument is not something Schiff is prepared to accept.

"If you're done self-aggrandizing and congratulating yourself …… first of all, well, yes, just because I think gold should be a small part of your portfolio doesn't mean I don't like gold. I just said gold is not an investment, gold is like cash. Now, I think there are a lot of really good investments in the world that I would like to own [but] if I had to choose between the NASDAQ and gold, I would own all of it."

Peter Schiff points out that if you bought gold 5 years ago or 50 years ago, you would stand up and think that Heart is picking the time period and then alert the audience that the HEX is down 70% from its all-time record high of September 2021.

Schiff then accused Hart of running a pyramid scheme and told him that when it collapsed, his followers would come to him.

In response to Mr. Gold's accusation, Mr. Van just laughed.

Disclaimers

All information contained on our website is published in good faith and for general information purposes only. Any action taken by readers with respect to the information on our website is entirely at their own risk.