Renowned economist Peter Schiff critiqued on Sunday billionaire Grant Cardone‘s widely touted Bitcoin (CRYPTO: BTC)– real estate hybrid model and invited him to a public debate.
Cardone’s Bitcoin + Real Estate Strategy
Cardone has announced several similar Bitcoin purchases over the past year as part of the hybrid model fund he has pioneered. The investment architecture places both property assets and Bitcoin within a unified limited liability company structure.
Cardone contends the vehicle is preferable to traditional real estate investment trusts as it gives investors access to real estate cash flow while maintaining upside exposure to Bitcoin.
Schiff Questions The Rationale
Peter Schiff, however, thinks combining real estate with Bitcoin “solves nothing.”
He argued that the rental income generated from real estate is sufficient to cover ongoing costs, including repairs and maintenance, negating the need for Bitcoin.
Contrary to assumptions, Schiff said he wouldn’t endorse having even gold in real estate funds, but added that the yellow metal is “better” than Bitcoin on any day.
Cardone didn’t immediately return Benzinga’s request for comment.
Schiff Remains A Skeptic
Schiff has consistently argued that Bitcoin holds no inherent value. He said that, unlike real estate, which can be used or rented out, Bitcoin, as a digital property, lacks such underlying utility.
Despite his skepticism towards Bitcoin, Schiff has admitted that the cryptocurrency isn’t going to zero.
Schiff told Benzinga that, because so many people now own and trade Bitcoin, a near-term collapse to zero is “highly unlikely”; however, for most investors, it may effectively feel like zero.
Price Action: At the time of writing, BTC was exchanging hands at $64,080.12, up 0.31% in the last 24 hours, according to data from Benzinga Pro.
Photo courtesy: Shutterstock/ s_bukley
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