Renowned economist Peter Schiff, known for his support of gold and constant criticism of Bitcoin, has continued his attack on Michael Saylor, co-founder of MicroStrategy, indicating that gold outperforms Bitcoin as a store of value in the long term. In a post on platform X, Schiff referred to gold as the "apex predator that will consume Bitcoin," citing data showing a decline in Bitcoin's value compared to the metal gold.
Bitcoin has been losing value against gold since 2021 Schiff emphasized that in 2021, Bitcoin could purchase 36.3 ounces of gold, whereas this amount has now dropped to just 27.7 ounces, reflecting a 24% decline over the past three years. He argues that this continuous drop indicates that Bitcoin is in a "hidden bear market" that investors have not been able to easily notice, raising questions about the feasibility of holding it as an investment asset.
Is Bitcoin a store of value or just a digital stock? Peter Schiff questioned the notion that Bitcoin can serve as a hedge against inflation, explaining that its strong correlation with the Nasdaq makes it resemble a "digital stock" more than "digital gold." He pointed out that Bitcoin, unlike traditional stocks, does not provide dividends or any financial returns, making it a more speculative asset rather than a sustainable store of value.
Rejection of the idea of Bitcoin as a strategic reserve for countries The economist harshly criticized the idea of governments relying on Bitcoin as a strategic reserve, questioning, "If the U.S. government is not planning to buy Bitcoin, why should other countries do so?" He considers that the efforts made by the cryptocurrency industry to promote Bitcoin as a global reserve asset are based on unrealistic expectations that could ultimately lead to significant disappointment among investors.
Gold at $3000 and Bitcoin falls below $80,000 Schiff's statements come at a time when the price of gold reached a new record level of $3000 per ounce, while Bitcoin fell to $78,500 on March 10, unable to regain momentum. In contrast, gold has risen by 14% since the beginning of the year, benefitting from increasing economic concerns and global trade tensions, while Bitcoin continues to suffer from sharp volatility without achieving sustainable gains.
