Peter Schiff, Global Strategist at Europac, has said again that he doesn’t think Bitcoin will have a bright future in the current battle between gold and Bitcoin. Schiff has always been supportive of gold. He talked about the recent rise in the price of the precious metal and said that it has now reached a new high of just under $2,450.
Schiff didn’t miss the chance to poke fun at Bitcoin by saying that it had dropped 30% since its record high in 2021. “Gold continues to show its worth as a stable and valuable product, while Bitcoin shines as a speculative bubble,” he said. His views come at a time when the price of Bitcoin is going through big changes, which adds to the fight between traditional assets and digital ones.
#Gold just hit another record high. It’s up over $25, trading just below $2,450. It won’t be long before it breaks above $2,500. In contrast, priced in gold, #Bitcoin is down 30% from its 2021 record high almost three years ago. Wake up and smell the bear market #HODLers.
— Peter Schiff (@PeterSchiff) July 16, 2024
The Ups And Downs Of Bitcoin
The last few weeks have been especially hard for the alpha crypto asset. Bitcoin (BTC) went down slowly until it reached a steady level around $65,000. It reached a high of over $73,000 by mid-March. But three months later, things got a bit worse. The coin shed $60,000 of its value, and by the beginning of July, it was only worth $52,000.
This downtrend occurred at the same time that whales and the German government sold a big portion lot of their bitcoins, which sent shockwaves through the market.
Even with all the trouble, Bitcoin showed signs of being strong. It has slowly been going up again over the last few days. It is now selling at $64,570, up 5% in the last 24 hours.
Some buyers are hopeful because of this small recovery, but Schiff is not impressed. He said such small returns are just blips in a general downward trend, and that investors must think again about their Bitcoin investments.
The Great Debate: Value Based On Intrinsics Vs. Probability
It’s not new for Peter Schiff to say bad things about Bitcoin. He has said again and again in recent comments that Bitcoin is a “speculative asset” that has no real value, especially when compared to traditional assets like gold.
He said Bitcoin’s recent price drops are a clear sign that it’s a bubble about to burst. They are getting into the illusion of quick wealth without understanding the fundamentals of value, he added.
Schiff’s comments, on the other hand, have not stopped people in the bitcoin world. A lot of crypto fans say that Bitcoin’s long-term success and its ability to change the financial world are more important than its instability.
They think Schiff’s view is out of date and doesn’t take into account how powerful blockchain technology can be in changing things.
Featured image from Pexels, chart from TradingView