With Bitcoin’s recent price surge, it can be inferred that Schiff’s post questioning the leading cryptocurrency’s safe haven status may have been premature.
Bitcoin (BTC), the world’s leading digital asset has come under fire once again from renowned Economist and gold proponent, Peter Schiff. He questioned Bitcoin’s status as a “safe haven” following a recent decline of the cryptocurrency.
Peter Schiff Compares Between Bitcoin and Gold
Peter Schiff explained in his post that while explosions in Central Iran and Israeli Airstrikes in Iraq and Syria sent stock futures tumbling and oil spiking, gold immediately skyrocketed by 1.6% to $2,416 as investors sought sanctuary from the volatility that afflicted other asset classes. On the other hand, Bitcoin immediately dropped by 4% down to $61,000.
According to Schiff, the rise in gold prices confirmed its standing as a reliable hedge against geopolitical threats and inflationary pressures. On the contrary, he claims that Bitcoin’s price drop exposed its vulnerability to geopolitical events and its status as a highly speculative asset rather than a haven. While Peter Schiff has been proven wrong on different occasions about his stance on Bitcoin, he has remained resolute.
Explosions In Central Iran and Israeli Airstrikes In Iraq and Syria send stock futures tumbling and oil spiking. #Gold immediately rallies 1.6% to $2,416. #Bitcoin immediately tanks 4% down to $61K. Which one is a safe haven and which one is a highly speculative digital token?
— Peter Schiff (@PeterSchiff) April 19, 2024
In a following post, Schiff stated that while gold is trading at a new record high, it is being outperformed by silver. As a result, he advised investors to buy silver instead of gold 2.0.
“The Bitcoin fad is over,” Schiff concluded.
It is worth mentioning that Peter Schiff has consistently expressed concern about Bitcoin’s inherent value and related investment vehicles such as Bitcoin Exchange-Traded Funds (ETFs). He emphasizes that Bitcoin has no inherent value and is seen to be valuable solely through communal belief and scarcity.
Schiff proclaimed in an earlier Coinspeaker report that the price of Bitcoin can only rise to $10 million if the US dollar fails, as the German Papiermark did in the 1920s.
To provide context, Germany experienced a period of hyperinflation from 1921 to 1923 after World War I. At the time, the hyperinflation reached such extreme proportions that the Papiermark, Germany’s currency at the time, saw quick devaluation, rendering it nearly worthless.
Is It Over for Bitcoin?
On Thursday, the price of Bitcoin dropped to $59,600 on the news of growing geopolitical tension in the Middle East. The global crypto market cap also fell 2.4% to around $2.36 trillion. However, Bitcoin has reclaimed its cycle high, trading at $65,000, representing a 6% increase within the last 24 hours.
With Bitcoin’s recent price surge, it can be inferred that Schiff’s post questioning the leading cryptocurrency’s safe haven status may have been premature. Moreover, with Bitcoin halving scheduled to commence soon, it is anticipated that the price of Bitcoin will push even higher.
On-chain data analysis provided by CryptoQuant reveals crypto whales have accumulated more than 27,700 Bitcoin, worth over $1.7 billion in the past few days. This development comes amid continuous outflows from Grayscale’s Bitcoin ETF (GBTC), which shows that investors are still confident in Bitcoin’s future potential.
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