Economist Peter Schiff Explains Why Bitcoin and Gold Soared This Year – ‘They’re Rising for Opposite Reasons’
Gold bug and economist Peter Schiff and founder of SchiffGold explains why gold and bitcoin are surging this year and shares his thoughts on it. Peter Schiff of course is the founder and current chairman of SchiffGold, a precious metals dealer specializing in gold and silver and related metals. Apart from this, he has also been a Bitcoin sceptic for a long time and regularly bashes the cryptocurrency for promoting gold. He tweeted on Monday that both gold and bitcoin are up in 2023 but they are both rising for opposite reasons. The economist further elaborates that gold is appearing as a hedge against inflation and the weakening effect of the dollar and at the same time we are using it as a hedge because speculators have bet that the Federal Reserve Pivot will surely be one of the biggest losers of 2022.
Additionally, many on Twitter disagreed with his statement and responded to his tweet, saying that gold is not a good hedge against inflation. While some people have taken the tweet made by Goldbug as a signal to buy bitcoin.
Apart from this, some people also believe that bitcoin is a better hedge against inflation than gold and can be used as a better hedge. Venture capitalist Tim Draper, for example, has repeatedly stated that he is bullish on the price of bitcoin because of its characteristics as a hedge against inflation, as well as billionaire hedge fund manager Paul Tudor Jones. He also says that he definitely prefers to buy bitcoin over gold, expecting the price of bitcoin to go much higher.
Many people on Twitter also pointed out that bitcoin has outperformed gold in a big way and we can definitely say that the price of bitcoin has gone up further after the gold bug’s sell recommendation. In December 2018, when the price of bitcoin was around $3000, Goldbug warned that “there is still much more to come out of this bubble.” Of course, commenting on this tweet, Schiff asked his investors to sell at the $18000 level, and Bitcoin supporter Peter McCormack also tweeted on Sunday that Bitcoin is trading up almost 27 percent because Peter Schiff was advised to sell bitcoin while gold did not doing. Admitting that the price of bitcoin had gone up, he told people to dump the coin, and in addition, Schiff argued that he also advised selling bitcoin because it was worth more than $60,000, and writing As of 2019, bitcoin is trading at $22,838.33, which has gained almost 35% in the last 30 days, and gold has gained 7% on both futures and spot prices during this period.