Peter Schiff, the renowned economist known for his skepticism towards Bitcoin, has once again stirred the pot, this time by mocking Bitcoin investors for their apparent indifference to the cryptocurrency’s declining value against gold.
In a recent post on X (formerly Twitter), Schiff posed a pointed question to Bitcoin enthusiasts: “Are any Bitcoin HODLers concerned that Bitcoin is now down 35% priced in gold since hitting its record high back in Nov. 2021? That’s almost three years ago.”
Schiff highlighted the stark contrast between Bitcoin’s muted performance against gold and the constant media hype surrounding the cryptocurrency. He cited a range of factors fueling Bitcoin’s popularity, including widespread advertising, conferences, the launch of Bitcoin ETFs, the rise of NFTs, MicroStrategy’s substantial Bitcoin holdings, and El Salvador’s adoption of Bitcoin as legal tender.
Schiff even added a poll to gauge the sentiment of Bitcoin maximalists, with a resounding 77% of respondents unconcerned about the gold-based decline, while only 22.8% expressed some concern.
Several X users countered Schiff’s narrative, reminding him that Bitcoin had reached a new all-time high earlier in March. However, Schiff remained focused on the gold-priced value, emphasizing his belief that it provides a more accurate measure of Bitcoin’s true worth.
Schiff’s latest critique comes amidst heightened interest in Bitcoin as a viable alternative to traditional assets. Global asset manager BlackRock recently advocated for Bitcoin as a potential hedge against future shocks to the US dollar and economy. Luke Gromen, president and founder of research firm Forest For The Trees, also warned of a potential breakdown in the dollar-centric global monetary system, suggesting that both gold and Bitcoin are well-positioned to benefit in such a scenario.
At the time of writing, Bitcoin was trading at $64,867.96, representing a 2.47% increase in the past 24 hours. Year-to-date, Bitcoin has risen 47%, outperforming gold’s 29% gain.
Schiff’s latest salvo has reignited the ongoing debate about Bitcoin’s true value and its potential as a long-term investment. While some view it as a hedge against economic instability, others remain skeptical, questioning its intrinsic worth and its ability to maintain its value over time. The ongoing battle between Bitcoin proponents and skeptics is likely to continue, with the ultimate answer remaining elusive.
