Peter Schiff, Global Strategist at Europac, has reiterated that he does not believe Bitcoin has a bright future in the ongoing battle between gold and Bitcoin. Schiff has always been a strong supporter of gold. He pointed to 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 also poked fun at Bitcoin, saying it has fallen 30% since its 2021 record high. “Gold continues to show its value as a stable and valuable commodity, while Bitcoin shines as a speculative bubble,” he said. His views come at a time when Bitcoin’s price is undergoing major changes, adding to the battle between traditional and digital assets.
#Gold has just hit a new record high. It is up more than $25, trading just below $2,450. It won’t be long before it breaks $2,500. On the other hand, if we take into account the price of gold, #Bitcoin is down 30% from its 2021 record high nearly three years ago. Wake up and smell the bear market #HODLers.
-Peter Schiff (@PeterSchiff) July 16, 2024
The Ups and Downs of Bitcoin
The past few weeks have been particularly difficult for the alpha crypto asset. Bitcoin (BTC) slowly declined until it reached a stable level around $65,000. It reached a high of over $73,000 in mid-March. But three months later, things got even worse. The cryptocurrency lost $60,000 of its value and by early July, it was worth just $52,000.
This downtrend occurred at the same time as whales and the German government were selling a large portion of their bitcoins, sending shockwaves through the market.
Despite all these problems, Bitcoin has shown signs of strength. It has slowly started to rise again over the past few days. It is now selling at $64,570, up 5% in the past 24 hours.
Some buyers are optimistic about the small rally, but Schiff isn’t impressed. He said these low returns are just blips in an overall downward trend and that investors need to rethink their bitcoin investments.
BTC up in the last 24 hours. Source: Coingecko
The Great Debate: Intrinsic Value versus Probability
This isn’t the first time Peter Schiff has badmouthed Bitcoin. He has repeatedly said in recent comments that Bitcoin is a “speculative asset” that has no real value, especially when compared to traditional assets like gold.
According to him, the recent drop in the price of Bitcoin is a clear sign that it is a bubble about to burst. They are indulging in the illusion of quick riches without understanding the fundamentals of value, he added.
Schiff’s comments haven’t stopped people in the bitcoin world. Many crypto fans argue that bitcoin’s long-term success and ability to change the financial world are more important than its instability.
They believe Schiff’s vision is outdated and fails to take into account the power that blockchain technology can have to change things.
Featured image from Pexels, chart from TradingView
