Peter Schiff Claims Recent Bitcoin Drop of 7% is Doom and Gloom for Safe Haven Asset Class
The gold bug Peter Schiff has attacked Bitcoin once more on social media. Now, he is claiming that Bitcoin is no safe haven asset because the token lost 7% of its value recently. His main argument is that the dip below $10,000 USD proved that Bitcoin is not the asset that most people believed it to be.
Bitcoin has again failed the safe haven test. On Friday, as escalating trade tensions sent global stock markets plunging, investors sought refuge in monetary safe havens. The Japanese yen, Swiss franc, and especially gold all moved higher. Yet Bitcoin plunged by more than stocks!
— Peter Schiff (@PeterSchiff) August 28, 2019
He affirmed that BTC has “failed the test” and that gold still reigns supreme, which is pretty convenient to him as he has a company that is focused on gold investments. Schiff claimed that investors saw the market pluging and jumped to the real safe haven assets: Japanese yen, Swiss franc and gold. All of these assets went up while BTC went down.
Despite him being a clear Bitcoin naysayer, his point is not entirely wrong. Bitcoin is failing to live up as a true safe haven asset just yet. In the last few weeks, it was one of the greatest losers of the market while gold and silver had good gains.
Some people have disagreed, though, affirming that U. S. bonds are an actual safe haven, not gold or Bitcoin, which are actually a store of value. As the government of the U. S. is currently even considering ultra-long bonds of 50 to 100 years, they are a clear choice.
The fall in the price of Bitcoin was most likely caused by market manipulation, it seems. And, given that the asset has high volatility, a loss of 7% is far from an ominous sign, as BTC may well go up 20% by next week.