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RE: The article that destroyed Peter Schiffs credibility
Yes, if all your bitcoin is in one wallet, you are one hack from losing it all. But the same is true should you decide to keep all your gold in one safe - you are one break-in from losing it all.
I only have a few hundred dollars worth of bitcoin and even still it is in multiple wallets.
The number of wallets doesn't necessarily matter if they are in one place (i.e. on the same PC). I don't have a significant amount of gold but I imagine most people that do have it in a bank or otherwise insured. And a decent safe is less likely to be broken into than your computer (or an exchange or online wallet). There are a lot of reasons one might want to invest in Bitcoin but because it is a safer investment than gold is not one of them.
You are absolutely right but IMHO this is details. My point is: security concerns exist with regard to any and all currency. Can BTC can be adequately secured? I'd say, yes. Can gold be adequately secured? I'd say, yes.
So in this regard the two currencies are not, IMO, drastically different.
My point was that for the average non-technical person, bitcoin is far more difficult to secure and it would be easy for someone not terribly familiar with the technology to lose their investment through a careless act or inadequate protection. On the other hand, most people know not to leave a bar of gold sitting on their lawn and you aren't going to accidentally delete it or lose it in a hard drive crash.
I agree that both CAN be adequately secured. I just don't think that sufficient ease of use is there yet that would allow for large scale investment. I'm sure that will change in the future, the question is whether or not Bitcoin will still be the dominant cryptocurrency then.