Economist and gold bug Peter Schiff explained why bitcoin and gold will rise this year.” They are rising for opposite reasons,” he said, arguing that 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
Gold bug and economist Peter Schiff shares his views on why bitcoin and gold are rising this year. Schiff is the founder and current chairman of Schiff Gold, a precious metals dealer specializing in gold and silver bullion. He has long been skeptical of Bitcoin and regularly bashes crypto while promoting gold. He tweeted Monday.
Both gold and bitcoin will rise in 2023, but for opposite reasons.
“Gold is rising as a hedge against inflation and a weak dollar, while bitcoin is rising along with other high-risk assets as speculators bet that the Fed’s pivot will cause the biggest loser rally of 2022,” the economist detailed.
On Twitter, many people responded to Schiff’s tweet that gold is not a good hedge against inflation by disagreeing with him. Some people took the gold bug’s tweet as abuy signal for BTC
Unlike Schiff, some believe that bitcoin is a better hedge against inflation than gold. For example, venture capitalist Tim Draper has repeatedly stated that he is bullish on bitcoin because of its properties as an inflation hedge. Billionaire hedge fund manager Paul Tudor Jones has also stated that he prefers bitcoin over gold and expects the price ofBTCto be higher than “gold”; he expects the price of BTCto be “much higher.”
Bitcoin has outperformed gold
since Schiff’s sell recommendation.
Many on Twitter have also noted that bitcoin has significantly outperformed gold, highlighting the price ofBTChas risen significantly since the gold bug sell recommendation; in December 2018, when bitcoin prices were around $3K, Schiffsaid, “This bubble,” warningthat “a lot of air has yet to come out of the bubble.
commenting on Schiff’s January 12 tweet telling investors to sell; in response to Schiff’s tweet telling him to sell BTCat the $18K level, bitcoin supporter Peter McCormacktweetedSince
Peter Schiff’s advice to sell bitcoin on Sunday, bitcoin has traded up about 27%. Gold has not.
While Schiff acknowledged that the price of bitcoin rose after he told people to dump their coins, he also claimed that he advised people to sell theirwhen the price of BTCwas well above $60K. As of this writing, bitcoin is trading at $22,838.33, up about 35% over the past 30 days, while gold futures and spot prices have risen about 7% over the same period.
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