Bitcoin Critic Peter Schiff Again Tries to Sway the Limelight Towards Gold
The crypto sphere can still easily be regarded as an emerging one. Compared to all the other financial markets in the world, crypto is still quite young and in many ways can still be said to be finding its footing. Bitcoin (BTC) is the first cryptocurrency and currently the asset with the biggest market capitalization and regardless of all the success the coin has had in recent times, there still are people who are not even the least bit excited about the coin’s chances and uses.
For a long time, Bitcoin and all other altcoins have been promoted as a great medium of exchange especially in places where fiat isn’t doing very well and inflation is getting the best of it. Some others use it as a proper hedge as in the case of Chinese businessmen who are afraid that the ongoing economic tussle between China and the U.S. might impact the Yuan negatively. This is despite the fact that the Chinese government is largely anti-cryptocurrency and are known to be doing a lot to stifle the growth of digital assets.
But apart from being a great medium of exchange and hedge, some proponents believe that Bitcoin is the best store of value and is better in this regard than traditional gold. However, there still are vocal critics of the asset who don’t have a lot of faith in it.
Schiff Says Drop Speculative Bitcoin and Buy Gold
Peter Schiff, the CEO of Euro Pacific Capital who is a known Bitcoin critic, recently posted a tweet promoting Gold against Bitcoin and placing emphasis on the speculative nature of the asset. According to Schiff,
— Peter Schiff (@PeterSchiff) June 4, 2019
The broker who is quite vocal about his disinterest towards Bitcoin has been known to call Bitcoin a “speculative vehicle for gambling”, explaining that Bitcoin is a “fool’s gold” that really just “pretends to be gold.” Schiff has also been known to say that the asset has no real intrinsic value and is only valuable based on the price people are comfortable buying it simply because
“they think they can sell to somebody else at a high price.”
However, some Bitcoin devotees have opposed Schiff’s and any other comparisons to gold that has ever been made about Bitcoin. This is large because Bitcoin has generally performed much better than gold. One of the arguments against Schiff is that:
“#BTC has provided greater returns since 2015 than owning an ounce of #Gold at spot price since 1970, even after falling from 2017 ATH’s.
Yay, #Gold went up 1.64% today!
#Bitcoin 5 year performance 2160%
#DropGold 5 year performance 5.90% “
Bitcoin Performed Even Better than Non-Crypto Assets
Even for naysayers and people with a less than a bullish opinion about Bitcoin, it’s hard to ignore the facts about Bitcoin’s performance. For example, in May 2019 alone, the asset had better returns than Nasdaq, S&P 500 and also more than oil. Bitcoin had a 19 percent return in the same month whereas S&P 500 had -6% and oil had -17%.
Speaking on the performance of financial assets and what could affect it, the Head of Standard Bank’s G-10 strategy, Steve Barrow, has explained that:
“The key to the performance of financial assets could be whether the Fed resists market pressure for rate cuts…Our view is still that the market is right to think that the next move will be a cut, but we still think that there will be less cuts and they will come at a later stage than the market currently anticipates.”