Prominent economist and Bitcoin (BTC) skeptic Peter Schiff was quick to take to social media after the Trump family launched a series of digital currencies to declare that the world’s number one cryptocurrency was no better.
The inciting incident and main source of inspiration, as Schiff himself explained in the X post, was Anthony Pompliano appearance on CNBCwhere the CFO seems to be struggling to explain what memecoins actually are.
Based on the interview, the economist and Gold Bull concluded that the main reason for what appeared to be a dance around the question is that Bitcoin is itself a “meme currency.”
Pompliano uses Berkshire Hathaway to explain coins
As for the interview, Pompliano reached out to Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A, BRK.B) (NYSE: BRK.A, BRK.B) when the host asked him to explain the tokens the Trump family had launched before the inauguration.” “As if she was five years old.”
The CFO, as it quickly turned out, tried to explain the launch of cryptocurrencies, such as the “official Trump meme” and the “official Melania meme,” as part of two greater phenomena.
The first is that few of the major assets are fully rooted in reality. Along with Berkshire, which owes most of its success to a smart trading approach but also to a non-trivial amount of Warren Buffett’s reputation, Pompliano explained that Tesla Motors (NASDAQ: TSLA) is a 50% high-quality, 50% equity company. % “Mimi.”
Although first defined in Richard Dawkins’s 1976 book, “meme” has become an umbrella term for various online jokes. The selfish gene As a “cultural unit” that repeats itself through imitation or imitation.
Donald Trump: America’s biggest brand, and America’s biggest meme
The second phenomenon described by Pompliano is that Donald Trump himself has become something of a meme.
For example, the CFO defended crypto traders as being no worse than other investors, as Trump Media (NASDAQ: DJT) behaved similarly to the meme coin – it was estimated to be 80-90% of the meme – and people were willing to buy things like cards. Trump’s business, whether physical or digital.
Why does Schiff say that Bitcoin is a meme currency?
As for Schiff’s Bitcoin connection, it appears to have originated from… CNBC The host initially rejected Berkshire’s analogy and suggested one centered around Bitcoin. The same rejection was denied by Pompliano.
However, the economist has a point, at least to some extent, given Bitcoin’s recent performance. The world’s leading cryptocurrency has traded based on sentiment – whether fearful, optimistic or excited by “bullish” internet memes.
Part of the reason is because the entire industry has somewhat evolved into other memes frequently seen on social media, such as X: calling the market a “casino.” However, it should be noted that this moniker has been widely applied outside the realm of cryptocurrencies, and is often used in the stock market.
At the same time, the fact that a concept or technology is being abused does not mean that it is baseless, and perhaps the biggest problem with cryptocurrencies is that they have decisively become risky assets without doing much to address the “currency” part of their name.
In fact, almost two decades later, their use as a means of payment remains complicated by various factors, such as lack of accessibility or unreasonably high transaction costs.
Featured image via Shutterstock
