Economist and gold bug Peter Schiff has explained why bitcoin and gold are going up this year. “They’re rising for opposite reasons,” he said, claiming that the price of gold is climbing as 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 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 crypto while promoting gold. He tweeted Monday:
Both gold and bitcoin are up in 2023, but they’re 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 that a Fed pivot will cause a rally in 2022’s biggest losers,” the economist detailed.
A number of people on Twitter disagreed with Schiff, replying to his tweet that gold is not a good hedge against inflation. Some people took 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. Venture capitalist Tim Draper, for example, has repeatedly said he is bullish about bitcoin due to its trait as an inflation hedge. Billionaire hedge fund manager Paul Tudor Jones has also said he prefers bitcoin over gold, expecting 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 hugely outperformed gold, emphasizing that the price of BTC has increased significantly since the gold bug’s sell recommendation. In December 2018, when the price of bitcoin was around $3K, Schiff warned that “a lot more air has yet to come out of this bubble.”
Commenting on Schiff’s Jan. 12 tweet telling investors to sell their BTC at the $18K level, bitcoin proponent Peter McCormack tweeted Sunday:
Bitcoin is trading around 27% up since Peter Schiff advised you to sell your bitcoin. Gold isn’t.
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 its price was well over $60K. 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% during the same time period.