Renowned economist Peter Schiff has recently highlighted a stark contrast in the performance of Bitcoin and gold over the past six months, a trend he believes is largely overlooked. While Bitcoin has experienced an 8% decline during this period, gold has surged by 23%. This divergence, according to Schiff, signals a shift in momentum, with gold gaining ground on Bitcoin.
Schiff’s analysis raises doubts about the narrative of Bitcoin overtaking gold or matching its market cap. He argues that the significant growth in gold’s market cap compared to Bitcoin further diminishes this possibility. Although he acknowledges Bitcoin’s substantial year-to-date gains, approximately 36.33% as of writing, he argues that these gains were largely driven by the spot ETF hype in the first two months. He emphasizes that those who didn’t invest in Bitcoin early in January have likely experienced no gains, and a majority of those who bought Bitcoin this year, either directly or through an ETF, are now losing money. On the other hand, Schiff asserts that hardly anyone who invested in gold is currently losing money.
Schiff’s views on Bitcoin have consistently generated controversy within the cryptocurrency community. He has been criticized by pro-Bitcoin proponents for focusing on short-term timeframes to highlight Bitcoin’s weaknesses and for exaggerating the performance of assets he favors, particularly gold. Just last month, Schiff reiterated his skepticism towards Bitcoin, stating that he has yet to hear a convincing argument to alter his stance. While acknowledging his open-mindedness, he maintained that he has not encountered any compelling evidence to refute his position or change his approach.
Schiff’s latest remarks seem to underscore his belief in the superior performance of gold over Bitcoin. This divergence in performance, coupled with his consistent skepticism towards Bitcoin, suggests a continued preference for gold as a safe haven asset.
At the time of writing, Bitcoin was trading at $57,657.50, down 1.60% in the last 24 hours, according to data from Benzinga Pro. Spot gold was trading at $2,491.98 per ounce, down 0.46%.
