Grayscale’s Pro-Bitcoin Ad “Drop Gold” Came Out as Gold’s Price Has Done Nothing But Go Up
Crypto companies make bad predictions sometimes. This is exactly what has happened recently with the Grayscale Bitcoin Trust (GBTC), which recently told investors that they should stop investing in gold and turn to Bitcoin instead.
While this is generally good advice, the execs at GBTC were very unfortunate because gold was bottoming right when they claimed that it was the time to sell it. As soon as they told investors to do, the price of the precious metal started to surge again.
According to Bitcoin bull Max Keiser, the timing could not have been worse. The Drop Gold campaign looked as if it was timed to be bad advice. Since the start of the campaign in May, gold went up by 27.5%, not a bad mark when your asset is not very volatile.
Bitcoin obviously did better when compared to gold, but telling people to sell gold when the prices are at their lowest is always bad advice. Pro-gold people such as the famous gold investor Peter Schiff often use this kind of mistake as arguments in order to defend gold.
Recently, he criticized Bitcoin investors for being so excited when Bitcoin’s price went up by 2%. According to him, BTC has a huge fuzz behind it, but it is a risky asset that is simply not as useful or valuable as gold.
Unfortunately, if more companies are to ask people to sell gold at the worst times as Grayscale did, more people are bound to believe people such as Peter Schiff.