Renowned economist Peter Schiff recently pointed out a significant divergence in the performance of Bitcoin (CRYPTO: BTC) and gold over the past six months, a trend he believes is largely overlooked.
What Happened: Expressing views on his official Youtube channel, Schiff highlighted that while Bitcoin has seen an 8% decrease over the past six months, gold has surged by 23%. He emphasized this divergence, stating that it indicates a shift in momentum, with Bitcoin losing ground to gold.
He further argued that the narrative of Bitcoin overtaking gold or matching its market cap seems even more unlikely now, given the significant growth in gold’s market cap compared to Bitcoin.
The Bitcoin critic acknowledged the leading cryptocurrency’s big gains year-to-date, around 36.33% as of this writing, but argued that most of the advances were made in the first two months, thanks to the spot ETF hype.
“So if you didn’t buy it early in January, you don’t have any gains. In fact, the vast majority of people who bought Bitcoin this year, either directly or through an ETF, are losing money,” Schiff argued. “On the other hand, hardly anybody who bought gold is losing money.”
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Why It Matters: Schiff's views on Bitcoin have been controversial in the cryptocurrency community.
He has been slammed by the pro-Bitcoin crowd for coming up with small timeframe windows as per his liking to highlight the coin’s weaknesses and exaggerate the performance of assets he supports, most notably gold.
Last month, Schiff reiterated his skepticism towards Bitcoin, stating that he has yet to hear a compelling argument that would change his stance. He asserted that he was open-minded but had not encountered any solid argument to refute his stance or influence him to act differently.
Given these views, Schiff’s latest tweet seems to further underline his belief in the superior performance of gold over Bitcoin.
Price Action: At the time of writing, Bitcoin was trading at $57,657.50, down 1.60% in the last 24 hours, according to data from Benzinga Pro. Spot gold was trading at $2,491.98 per ounce, down 0.46%.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
