Economist and crypto skeptic Peter Schiff has urged Bitcoin investors to reconsider their investment in the cryptocurrency amid rising gold and silver prices.
The economist stated that volatility in the currency, bond, and digital asset markets is creating conditions favorable for investing in traditional stores of value, namely precious metals. Schiff noted new record highs reached by gold and silver: $4,967 and $99.24 per ounce, respectively. Meanwhile, Bitcoin is trading at $88,000—approximately 30% below its October peak of $126,198.
According to Schiff, Bitcoin is struggling to provide returns comparable to gold. The economist attributed this to growing pressure on the US dollar due to international tensions. Therefore, investors are increasingly seeking protection in so-called hard assets, Schiff stated.
The president of brokerage firm Euro Pacific Capital argues that the main risk for long-term Bitcoin holders isn’t a sudden collapse of the crypto market. The main danger is the lost profits from capital locked up in an underperforming asset. According to the crypto skeptic, investors holding the first cryptocurrency are missing out on significant profits they could have earned by investing in gold.
The investor acknowledged Bitcoin’s success, but only in its early stages, when few people were investing in the cryptocurrency. The situation changed as large companies and other corporate investors entered the market. Schiff insists that increased access to Bitcoin has coincided with a decline in its returns. He doubts Bitcoin can serve as “digital gold” and be useful in times of economic stress.
Schiff tried to convince her X followers that Bitcoin is unlikely to replicate gold’s rise and then sustain that trend. A prolonged lag between Bitcoin and precious metals could trigger a sharp correction in the crypto market, the economist warned.
Schiff recently suggested that Bitcoin could depreciate in the long term and return to $100. The investor previously criticized Strategy for its large and regular Bitcoin purchases, claiming the company would soon collapse.
