Peter Schiff Challenges the Idea of Bitcoin as Stored Economic Energy

Peter Schiff, a well-known gold advocate, has spoken out against the idea that Bitcoin (BTC) can be seen as a way to store economic energy

In a recent X post, Schiff rejected a popular view shared by many Bitcoin supporters who believe the asset works like a safe container for human effort and value. 

Supporters Say Bitcoin Preserves Human Effort as Digital Energy

Bitcoin supporters, including Strategy Chairman Michael Saylor, believe money represents human effort. When people work, they use energy. When they receive money, that energy is saved so it can be used later. 

They argued that government money slowly loses value because inflation reduces its buying power. Also, gold is seen as reliable but remains difficult and costly to move across borders. 

Bitcoin, in contrast, is presented as a digital solution that solves both problems. It can be sent anywhere quickly and is limited in supply. 

Mining Bitcoin requires electricity, which is why supporters describe it as digital energy stored in a secure system.

This energy-based interpretation of Bitcoin has gained attention beyond the crypto community. In a recent discussion, Tesla’s Elon Musk described Bitcoin as a currency linked to basic physical laws because it requires energy to exist. 

Musk has also suggested that in the future, advances in artificial intelligence (AI) and robotics could reduce scarcity so much that money itself may no longer be needed.

Schiff Says Bitcoin Consumes Energy but Stores None

In his post, Peter Schiff strongly disagrees with the energy comparison entirely. He argued that Bitcoin does not store energy in any literal or practical sense. 

The electricity used in Bitcoin mining is consumed at the moment new coins are created. Once spent, that energy cannot be recovered or reused.

Schiff pointed out a simple test. If a power grid fails, owning one Bitcoin does not provide any electricity, heat, or usable power. It delivers zero watts. 

This, he argued, exposes the weakness of calling Bitcoin stored energy. The network may rely on energy to function, but the asset itself does not contain or preserve it.

Peter Schiff Says Gold Turns Energy Into Real Value, Unlike Bitcoin

Schiff compared Bitcoin to gold to make his point clearer. Gold mining also uses large amounts of energy. However, he argued that this energy is not wasted because it produces a physical material.

Gold is used in electronics, medicine, aerospace, and jewelry. In his view, the energy spent mining gold is turned into something useful and lasting. That physical value remains even when power systems fail. This conversion gives the energy a lasting form, something he believes Bitcoin lacks.

This debate shows a clear divide in how value is understood in the digital world. While Bitcoin continues to gain attention as a new form of money, Schiff’s criticism highlights the limits of calling it stored energy.