In the ever robust and dynamic debate on which asset is best to bet on in this era of the dwindling global economy, the duo of Gold and Bitcoin are constantly being featured. While the former asset has been touted as a viable hedge against inflation and other economic woes, the latter asset has also started gaining remarkable traction in the scheme of things.
The two assets have their key proponents but one name stands out in the critic of the world’s premier digital currency, and the name is Peter Schiff. Peter David Schiff is an American stockbroker, financial commentator, and radio personality. He is the CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut. The criticisms by Peter Schiff come out of the deep background he has on Wall Street, and a staunch belief in the unchanging trust in the potential of what he believes in, that is Gold.
Using Twitter as his go-to place, Schiff has an archive of his bearish projections on Bitcoin, and conversely, on the bullish tendencies of Gold. Some of his latest clamors saw the stockbroker veteran noted that;
“The reckless monetary policy of the #Fed and the economic destruction it will leave in its wake does help the Bitcoin sales pitch. But it does nothing to help Bitcoin itself. Unfortunately, most who buy #Bitcoin to protect themselves will be worse off than those who do nothing.”
Besides shading the Federal Reserve, Schiff also noted that the mainstream clamor or publicity of Bitcoin, and not the coin’s perfectly engineered fundamentals may be behind the surge.
“The recent surge in #Bitcoin is not being driven by wide-spread institutional adoption. @CNBC and other crypto shills are exploiting the fact that a few high-profile institutions have taken positions to create the false impression of larger participation to sucker in more buyers.”
One of the major points being drawn on by Peter Schiff as well as the other Bitcoin bears is that Bitcoin has not withstood the element of time to test its fundamentals. While the only major struggle Bitcoin and its hoard of altcoins have had is with regulations, its technical engineering has not been profiled to succeed for decades just as Gold has been.
Peter Schiff believes Bitcoin is a bubble and that the ongoing bull rally is not sustainable in the long-term. He noted that;
“The only valid reason to buy Bitcoin is thinking the bubble will get much bigger before it bursts. Most #Bitcoin buyers don't know it's a bubble so they will never sell. But since most who do will be unable to tell when it's popped, they're also unlikely to get out with a profit.”
However, Peter Schiff’s pronouncements should not be disregarded as even though he appears to have little or no believers in his campaign against Bitcoin, the fact that he has been in the investing space for decades should give credence to his positions about the disparity between bitcoin and gold.
Until Schiff’s Bitcoin bubble projection bursts, the coin might have rallied as much as $500,000, according to the Winklevoss brothers, one of the most prominent Bitcoin evangelists today. Whatever gets Bitcoin’s price to this historic high, however, will make the coin more immune to the woes being projected by Schiff and the other conservative investors.