Peter Schiff is confident in a “new reality” in which gold-linked stocks are taking over from the technology stocks that have dominated the market for the past several decades. At the same time, the investor points out that risk assets will soon collapse and Bitcoin will be the catalyst for this bearish move.
However, it is worth remembering that Schiff has recently become a joke among Bitcoin investors. After all, after Bitcoin was recommended selling for $18,000, the cryptocurrency surged to $23,000 that same month.
Bitcoin is currently trading at $28,000 and is worth 56% more than it was when Schiff recommended selling in January.
Does Schiff really believe that Bitcoin will crash or is this just a strategy to get engagement?
Last week, economist Alex Krüger posted a controversial post stating that investing in Bitcoin would never make anyone rich again. Hours later, he revealed that the tweet was a social experiment.
“I wanted to look at engagement in response to a polarizing absolute statement.”
Peter Schiff’s tweets about Bitcoin are very similar to this strategy. After all, regardless of the cryptocurrency’s performance, Schiff publishes posts monthly stating that BTC is nearing its end.
For example, this Monday (3) the investor again claimed that Bitcoin will perform negatively while gold will become the best investment in the world.
“I believe risky assets will soon collapse, led by Bitcoin.”
“Inflation hedges about to burst, led by precious metal miners”continued Schiff. “As I mentioned in my last podcast, gold stocks are the new tech stocks. Prepare for this new reality or suffer the consequences.”
I think risk assets will collapse hard soon led lower by #Bitcoin. #Inflation hedges are about to break out, led higher by precious metals miners. As I mentioned my last podcast, #gold stocks are the new technology #shares. Prepare for this new reality or suffer the consequences.
— Peter Schiff (@PeterSchiff) April 3, 2023
Bitcoin vs gold
For the first time in the past 12 months, gold bounced back above US$2,000 this Tuesday (4). Compared to the beginning of the year, the profit was 10.9%.
On the other hand, Bitcoin has increased in value by 71% during the same period. That’s almost 7 times more, but that doesn’t seem to convince Peter Schiff enough to switch from physical to digital.
Beliefs aside, gold and Bitcoin are quite similar. However, aside from gold’s ancient history, Bitcoin has an edge in every way.
In addition to better divisibility, transportability, and ease of storage, Bitcoin has absolute scarcity. That is, no matter how much your price increases, your limit is 21 million units.
On the other hand, gold will be mined more by miners as its price rises. As a result, the price will soon be lowered by this new selling pressure, which will affect even the miners who are now making more profit.
In the end, it seems like only a matter of understanding, or just goodwill, to realize that Bitcoin will become the world’s next reserve currency. Furthermore, with only 14 years of history, we can also say that we are just at the beginning of this change.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
