Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Economist Peter Schiff Explains Why Bitcoin and Gold Are Up This Year – “They’re Rising for Opposite Reasons” – Markets & Prices Bitcoin News
Economist and gold bug Peter Schiff has explained why bitcoin and gold are going up this year. “They are rising for the opposite reasons,” he said, arguing that the price of gold is climbing as investors look to 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 view on why bitcoin and gold are going up this year. Schiff is the founder and current chairman of Schiffgold, a precious metals dealer specializing in gold and silver bullion. He has long been a bitcoin skeptic, regularly bashing the crypto while promoting gold. He tweeted on Monday:
Both gold and bitcoin are up in 2023, but they are rising for opposite reasons.
“Gold is rising as a hedge against inflation and a weaker dollar, while bitcoin is rising with other high-risk assets as speculators bet a Fed pivot will lead to a rally in 2022’s biggest losers,” the economist said.
A number of people on Twitter disagreed with Schiff, responding to his tweet that gold is not a good hedge against inflation. Some took the gold bug’s tweet as a BTC buy signal.
Contrary to Schiff, some believe that bitcoin is a better hedge against inflation than gold. Venture capitalist Tim Draper, for example, has repeatedly said he is bullish on bitcoin because of its nature as an inflation hedge. Billionaire hedge fund manager Paul Tudor Jones has also said he prefers bitcoin to gold, and expects the price of BTC to be “much higher.”
Bitcoin has outperformed gold since Schiff’s sell recommendation
Many people on Twitter also pointed out that bitcoin has massively outperformed gold, stressing 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 warned that “much more air is yet to come out of this bubble.”
Commenting on Schiff’s January 12 tweet telling investors to sell their BTC at the $18K level, bitcoin supporter Peter McCormack tweeted Sunday:
Bitcoin is trading around 27% up since Peter Schiff advised you to sell your bitcoin. It’s not gold.
While admitting that the price of bitcoin has risen since he told people to dump their coins, Schiff argued that he also advised people to sell their BTC when the price was well above $60K. At the time of writing, bitcoin is trading at $22,838.33, up approx. 35% over the last 30 days, while both gold futures and spot prices are up approx. 7% in the same time period.
Do you agree with Peter Schiff on why bitcoin and gold are rising this year? Let us know in the comments section below.
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