Peter Schiff puts gold over Bitcoin as price recovers from weekend crash

Gold has reached historic highs, rising above $4,000 per ounce, while Bitcoin is struggling to maintain its position in the face of increasing geopolitical ￰0￱ Schiff, a long-time gold bull, thinks that this recent market behavior proves his long-held opinion that Bitcoin cannot be regarded as the digital equivalent of gold. Gold’s spike to record highs has raised eyebrows among ￰1￱ traded for more than $4,000 for the first time in ￰2￱ sharp increase is a result of several economic and geopolitical factors, including concerns about inflation, heightened worries about fiscal risks, and the escalating U. S.-China trade ￰3￱ reports of inflation slowing down, central banks, especially those in emerging markets, have continued to add to their gold reserves as insurance against global economic ￰4￱ recent increase in U.

S.-China trade tensions has added even more fuel to this flight to ￰5￱ October 10, ￰6￱ Donald Trump’s issuance of a threat to impose 100% tariffs on Chinese exports sent traditional markets into a tailspin , and gold prices surged. Schiff’s gold-Bitcoin divide Peter Schiff views the disconnection between gold and Bitcoin as evidence of his theory that Bitcoin is not a safe-haven ￰7￱ Bitcoin fell along with other risk assets, gold rose, to shine through as a store of value in times of ￰8￱ believes Bitcoin, unlike gold, is a risk asset that follows tech stocks and other speculative ￰9￱ noted, “Gold’s surge is exposing the fiction that Bitcoin is digital ￰10￱ bottom can drop out of Bitcoin at any time.” The recent market declines in Bitcoin, in his view, corroborate the case for Bitcoin being unable to replace gold in an investor’s ￰11￱ also contends that Bitcoin is not scarce, claiming that the divisibility of Bitcoin into satoshis is incompatible with the concept of true scarcity, which gold has by virtue of its limited availability and ￰12￱ Schiff’s argument appears to be compelling in the short term, the long-term outlook for Bitcoin is less ￰13￱ proponents argue that its volatility doesn’t mean it cannot serve as a long-term ￰14￱ acknowledges that Bitcoin’s performance has been poor in the short term, but notes that the increased media coverage around gold could help create short-term corrections, which he believes are ￰15￱ expects the gold rally, which is largely driven by institutional investors, to have only just ￰16￱ price began the week on a high note, continuing its recovery from the weekend on Monday, closing above $115,000 after a massive dip last week.

However, this momentum was broken on Tuesday as Bitcoin fell below $112,000. Meanwhile, Schiff cautions that the demand for Bitcoin fueled by ETFs could suffer a “sudden reversal” if holders of these shares start redeeming them in large numbers, triggering a liquidity crisis and a possible price ￰17￱ your strategy with mentorship + daily ideas - 30 days free access to our trading program