Open Letter to Peter Schiff After Debate Today

peter-schiff-show-erik-voorheesThe case for bitcoin continues to be made by very smart minds, as well as some minds still being overly skeptical of the technology and currency.

Today a letter was sent by Erik Voorhees to Peter Schiff following up on the earlier debate they had.

It’s a great read, here is a snippet:

Dear Peter,

[…] While we had some valuable discussion today, I felt a follow-up was appropriate to better articulate my points. You’re right to be highly skeptical of such a new technology and monetary system, but please take the time to ensure your skepticism doesn’t blind you from what I humbly suggest is one of the most important tools for human freedom ever conceived.

The Fundamentals

First, Bitcoin must always be considered as two things: the payment network (Bitcoin) and the currency units (bitcoins). Condemnations of the latter can often be resolved with an understanding of the former. Satoshi should have named them differently to avoid this initial confusion.

When you suggest that bitcoins have “zero intrinsic value,” you are only considering the currency unit itself and ignoring the payment network. While I prefer the term “utility” over “intrinsic value” (because all value is subjective to the valuer), I may indeed admit that bitcoins, as currency units all by themselves, have no fundamental utility and are completely uninteresting. But – and this absolutely critical – the payment network has vast utility.

Read the whole letter here:

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