Economist and gold bug Peter Schiff explained why bitcoin and gold are rising this year. “They’re rising for opposite reasons,” he said, saying the price of gold is climbing as investors view the metal as a hedge against inflation and a weaker dollar.
Peter Schiff explains why Bitcoin and gold are rising
The Gold Bug and Economist Peter Schiff shared his views on why bitcoin and gold are rising this year. Schiff is the founder and current chairman of Schiffgold, a precious metals trader specializing in gold and silver bullion. He has long been a bitcoin skeptic, regularly bashing the crypto while promoting gold. He tweeted on Monday:
Gold and bitcoin are up in 2023, but they are up for opposite reasons.
“Gold rises as a hedge against inflation and a weaker dollar, while bitcoin rises along with other high-risk assets as speculators bet a Fed pivot will cause a rally among the highest big losers of 2022”, detailed the economist.
A number of people on Twitter disagreed with Schiff, responding to his tweet that gold is not a good inflation hedge. Some people took the gold bug tweet as a signal to buy BTC.
Contrary to Schiff, some people think bitcoin is a better inflation hedge than gold. Venture capitalist Tim Draper, for example, has repeatedly said he’s bullish on bitcoin because of its inflation-hedging nature. Billionaire hedge fund manager Paul Tudor Jones also said he preferred bitcoin to gold, expecting the price of BTC to be “much higher.”
Bitcoin has outperformed gold since Schiff’s sell recommendation
Many people on Twitter also pointed out that bitcoin has significantly outperformed gold, pointing out that the price of BTC has risen significantly since the gold bug sell recommendation. In December 2018, when the price of bitcoin was around $3,000, Schiff warned that “a lot more air still needs to come out of this bubble”.
Commenting on Schiff’s January 12 tweet telling investors to sell their BTC at the $18,000 level, bitcoin proponent Peter McCormack tweeted Sunday:
Bitcoin is trading up around 27% since Peter Schiff advised you to sell your bitcoin. Gold is not.
While admitting that the price of bitcoin has risen since he told people to dump their coins, Schiff argued that he also advised people to sell their BTC when its price was well above $60,000. As of this writing, bitcoin is trading at $22,838.33, up around 35% in the past 30 days, while gold futures and spot prices have risen around 7% over the same period.
Do you agree with Peter Schiff on why bitcoin and gold are rising this year? Let us know in the comments section below.
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