Renowned economist and gold advocate Peter Schiff has criticized Bitcoin (BTC), the world’s top digital asset, after its recent drop in value. He challenged Bitcoin’s reputation as a “safe haven” investment.
Peter Schiff Compares Between Bitcoin and Gold
In a recent post, Peter Schiff described how explosions in Central Iran and Israeli air raids in Iraq and Syria caused stocks to plummet and oil prices to surge. Meanwhile, gold experienced a significant increase of 1.6%, reaching $2,416, as investors looked for safety during these market swings. Conversely, Bitcoin dipped by 4% to $61,000 in response to the instability.
Based on Schiff’s perspective, the increase in gold prices underscores its role as a secure investment during times of geopolitical tensions and inflation. Conversely, he believes that Bitcoin’s price decrease highlights its susceptibility to geopolitical events and its speculative nature, rather than being a safe haven asset. Despite being incorrect about Bitcoin in the past, Schiff has consistently held his ground on this matter.
Central Iran’s explosions and Israeli air strikes in Iraq and Syria cause stock futures to plummet while oil prices surge. Gold jumps 1.6% to $2,416, making it a potential safe-haven asset. In contrast, Bitcoin swiftly drops 4% to $61K, illustrating its highly speculative nature as a digital token.
— Peter Schiff (@PeterSchiff) April 19, 2024
In an upcoming post, Schiff noted that although gold is reaching new price peaks, silver is currently surpassing it in terms of returns. Therefore, he recommended that investors consider purchasing silver over gold for potential gains.
“The Bitcoin fad is over,” Schiff concluded.
It is worth mentioning that Peter Schiff has consistently expressed concern about Bitcoin’s inherent value and related investment vehicles such as Bitcoin Exchange-Traded Funds (ETFs). He emphasizes that Bitcoin has no inherent value and is seen to be valuable solely through communal belief and scarcity.
In a previous article for Coinspeaker, Schiff stated that the cost of Bitcoin could reach up to $10 million under the condition that the US dollar experiences a similar downfall as the German Papiermark did in the 1920s.
During the aftermath of World War I, from 1921 to 1923, Germany underwent a spell of hyperinflation. The inflation became so rampant that it drastically reduced the value of the German currency, the Papiermark, making it almost worthless.
Is It Over for Bitcoin?
Thursdays saw Bitcoin’s price dip to $59,600 due to escalating geopolitical conflict in the Middle East. The total value of all cryptocurrencies decreased by 2.4%, landing at approximately $2.36 trillion. Nonetheless, Bitcoin bounced back, reaching a new high of $65,000 – marking a 6% growth within the past day.
After Bitcoin’s price increase recently, it seems that Peter Schiff’s doubt about Bitcoin being a safe-haven asset might have been expressed too early. Additionally, the upcoming Bitcoin halving event is expected to further boost Bitcoin’s price.
According to data analysis from CryptoQuant’s on-chain feature, crypto whales have amassed approximately 27,700 Bitcoins, equating to over $1.7 billion, within the past few days. This occurrence takes place while Grayscale’s Bitcoin ETF (GBTC) experiences ongoing withdrawals, demonstrating investors’ persistent belief in Bitcoin’s future value.
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2024-04-19 12:57