Economist Peter Schiff explained why bitcoin and gold are up this year. “They are rising for opposite reasons“He said gold prices are rising because investors see the metal as a hedge against inflation and a weaker dollar.
Peter Schiff explains why bitcoin and gold are rising
Economist Peter Schiff explained why bitcoin and gold are on the rise this year. Schiff is the founder and current president of Schiffgold, a precious metals dealer specializing in gold and silver bullion. He has long been a bitcoin skeptic, regularly denigrating the crypto-currency while promoting gold. He tweeted on Monday:
Both 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 with other high-risk assets, as speculators bet that a Fed pivot will cause a rally in the biggest losers of 2022“, detailed the economist.
A number of people on Twitter disagreed with Peter Schiff, responding to his tweet that gold is not a good hedge against inflation. Some people took Peter Schiff’s tweet as a response to the question of whether gold is a good hedge against inflation.
Unlike Peter Schiff, some people think bitcoin is a better hedge against inflation than gold. Venture capitalist Tim Draper, for example, has repeatedly stated that he is optimistic about bitcoin because of its inflation hedge nature. Billionaire hedge fund manager Paul Tudor Jones has also said that he prefers bitcoin to gold because he expects bitcoin to be more expensive than gold. BTC to be “much higher“.
Bitcoin has outperformed gold since Schiff’s sell recommendation
Many people on Twitter have also pointed out that bitcoin has vastly outperformed gold, noting that the price of bitcoin is higher than gold. BTC has risen significantly since the bug’s recommendation to sell gold. In December 2018, when the price of bitcoin was about $3K, Peter Schiff warned that “a lot of air still has to come out of this bubble“.
Gold isn't. pic.twitter.com/cookRRax45
— Peter McCormack🏴☠️ (@PeterMcCormack) January 22, 2023
Commenting on Schiff’s January 12 tweet asking investors to sell their bitcoin at the $18K level, bitcoin supporter Peter McCormack tweeted Sunday:
Bitcoin is trading about 27% higher since Peter Schiff advised you to sell your bitcoins. Gold isn’t.
While admitting that the price of bitcoin has risen since he advised people to get rid of their coins, Schiff argued that he also advised people to sell their bitcoins when its price was well over $60,000. At the time of writing, bitcoin is trading at $22,838.33, up about 35% in the past 30 days, while gold futures and spot prices have risen about 7% in the same period.