Economist Peter Schiff Explains Why Bitcoin and Gold Are up This Year — ‘They’re Rising for Opposite Reasons’ – Markets and Prices Bitcoin News
Economist and gold bug Peter Schiff has explained why bitcoin and gold are rising this year. “They are rising for opposite reasons,” he said, claiming that the price of gold is rising because investors view 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 has shared his thoughts on why bitcoin and gold are rising this year. Schiff is the founder and current chairman of Schiffgold, a bullion dealer specializing in gold and silver. A longtime bitcoin skeptic, he regularly bashes crypto while promoting gold. He tweeted Monday:
Both gold and bitcoin are rising in 2023, but they are rising for opposite reasons.
“Gold rises as a hedge against inflation and a weaker dollar, while bitcoin rises with other risky assets as speculators bet a Fed pivot will trigger a rally in 2022’s biggest losers,” the economist explained.
A number of people on Twitter disagreed with Schiff, responding to his tweet that gold is not a good protection against inflation. Some people saw the gold bug’s tweet as a BTC buy signal.
Unlike Schiff, some people believe that bitcoin is a better hedge against inflation than gold. For example, venture capitalist Tim Draper has said repeatedly that he is bullish on bitcoin because of its property as an inflation hedge. Billionaire hedge fund manager Paul Tudor Jones has also said he prefers bitcoin to gold, expecting BTC’s price to be “much higher”.
Bitcoin has outperformed gold since Schiff’s sell recommendation
Many people on Twitter also pointed out that bitcoin has vastly outperformed gold, highlighting that the price of BTC has risen significantly since the gold bug’s sell recommendation. In December 2018, when the price of bitcoin was around $3K, Schiff abolished warned that “there’s a lot more air to come out of this bubble.”
Responding to Schiff’s Jan. 12 tweet telling investors to sell their BTC at the $18K level, bitcoin proponent Peter McCormack tweeted Sunday:
Bitcoin is trading about 27% higher since Peter Schiff advised you to sell your bitcoin. Gold is not.
While admitting that bitcoin’s price has risen since he told people to ditch their coins, Schiff argued that he also advised people to sell their BTC when the price was well above $60,000. At the time of writing, bitcoin is trading at $22,838.33, up about 35% over the past 30 days, while both gold futures and spot prices are up about 7% over the same period.
Do you agree with Peter Schiff on why bitcoin and gold are rising this year? Let us know in the comments below.
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