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Bitcoin will never replace gold as ultimate store of value - Peter Schiff

Published 04/01/2024, 10:48 AM
Updated 04/01/2024, 10:48 AM
© Reuters

On March 6, the price of Bitcoin soared to $70,000, breaking its prior record set in November 2021 during the pandemic. Similarly, gold reached a new all-time peak at $2,145.37, surpassing its previous high from last December.

Economist Peter Schiff shared his doubts in recent remarks about Bitcoin's latest price surge, particularly in comparison to gold. Despite Bitcoin reaching new heights in dollar terms, he pointed out that when measured against the precious metal, the primary crypto asset has not achieved new highs. 

Schiff suggested this discrepancy could weaken the argument for Bitcoin as "digital gold," or replacing the yellow metal as the ultimate store of value. He added that the cryptocurrency still lags behind in the Bitcoin-to-gold ratio, which measures the relative performance of the two assets.

Schiff's remarks come amid a backdrop of Bitcoin's strong performance gains. The cryptocurrency saw an impressive increase of over 155% in 2023, with this upward trend continuing into 2024, where it has already added roughly 67% in value. This surge has coincided with the SEC's approval of spot Bitcoin exchange-traded funds, which is further buoying institutional investor sentiment.

Schiff, known for his critical stance on Bitcoin, also criticized the media's portrayal of the cryptocurrency and questioned the practicality of trading Bitcoin ETFs.

On the other hand, gold has also been on a remarkable run, closing the quarter at an all-time high. The surge comes in line with the bullion’s reputation as a safe haven for investors, especially during volatile market conditions. 

Despite Schiff's cautionary view, some market analysts like Larry Tentarelli remain optimistic about Bitcoin's potential. Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report, expects that Bitcoin could surpass $100,000 by the end of the year, possibly driven by the upcoming Bitcoin halving event. However, he also noted that this forecast could be influenced by movements in the 10-year bond yield.

Record highs for Bitcoin and gold represent the first time both the cryptocurrency and the precious metal have hit their peak values at the same time since Bitcoin's inception over a decade ago. However, the factors traditionally believed to influence each asset vary significantly — gold has been considered a safe haven and a store of value for decades, whereas Bitcoin's function beyond speculative investment remains a subject of intense debate.

Latest comments

It already has
It is interesting, gold over the past month has out perform btc a little, but btc has way out performed gold for the past year (and even more so over the past 5 years). When the market fell during COVID gold fell too, because of selling gold to cover stock market obligations, etc. Later it did come backup (but so did the market). The one thing gold has going for it, if you actually have the gold in hand. It does not rely on computers, the Internet, and electricity. But if that is all down, the world will be a totally different place, compared to how we know it today.
Bitcoin Bull rally is near the end.
Gold will be backed by Bitcoin.
Bro said this cause he wants to buy the dip
In my opinion is that Bitcoin, to be successful, needs a different world backer like a government or governments. In the near future, I would see that in the future, Japan and China will open a future trade agreement to have both countries back a future Bitcoin.
Why would any government back something that it will not have any control of over
Bitcoin can succeed without the backing of a government if more people find it useful
Correct. They will destroy it instead habdcto hand with central banks
The real bullrun just started
Bitcoin to be successful needs a different world financial order. Note the growth of Brics and our Government’s real attack on the dollar. Dollar as no longer the reserve currency is within sight. In crisis, gold can be ceased. Not Bitcoin.
Bitcoin, to be successful, needs a different world backer like a government or governments. I would see that in the future, Japan and China will open a future trade agreement to have both countries back a future Bitcoin.
Seems like Peter has a pretty poor record on his BTC calls - why do you keep referring to him? You are credible because he is not credible.
Truly hilarious! Peter Schiff, 2012: "Bitcoin will drop to ZERO!" Peter Schiff, 2013: "Bitcoin will drop to ZERO!" 2014, 15, 16, 17, 18, 19, 20, 21, 22, 23 all the same: "Bitcoin will drop to ZERO!" Peter Schiff, February 2024: "I wish i owned some Bitcoin."
exactly this guy fomo and salty
When his son gets his inheritance, he is going all in on bitcoin
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