Crypto

Economist Peter Schiff explains why Bitcoin and gold have risen this year: “They are rising for opposite reasons”

Economist Peter Schiff explained why bitcoin and gold have risen this year. “They are rising for opposite reasons,” he said, saying that the price of gold is rising as investors view the metal as a hedge against inflation and a weaker dollar.

Peter Schiff explains why bitcoin and gold are rising

Economist Peter Schiff explained why bitcoin and gold have risen this year. Schiff is the founder and current chairman of Schiffgold, a precious metals trader specializing in gold and silver bars. He has long been a bitcoin skeptic, regularly berating crypto and promoting gold. On Monday, he tweeted:

Both gold and bitcoin rose in 2023, but they rose for opposite reasons.

“Gold is rising as a hedge against inflation and a weaker dollar, while bitcoin is rising along with other high-risk assets as speculators bet that the Fed’s pivot will lead to a rally of biggest losers in 2022,” the economist said.

A number of people on Twitter disagreed with Peter Schiff, responding to his tweet that gold is not a good hedge against inflation. Some people took Peter Schiff’s tweet as an answer to the question of whether gold is a good hedge against inflation.

Unlike Peter Schiff, some people think that bitcoin is better inflation protection than gold. Venture capitalist Tim Draper, for example, has repeatedly stated that he is optimistic about bitcoin due to its ability to hedge inflation. Billionaire hedge fund manager Paul Tudor Jones also said he prefers bitcoin to gold because he expects the price of bitcoin to be higher than that of gold. BTC will be “much higher.”

Bitcoin outperformed gold after Schiff’s sell recommendation

Many people on Twitter have also noted that Bitcoin has significantly outperformed gold, pointing out that the price of gold is higher than that of gold. BTC rose significantly following the gold bug sell recommendation. In December 2018, when the price of bitcoin was around $3,000, Peter Schiff warned that “there is still a lot of air to come out of this bubble.”

Commenting on Schiff’s Jan. 12 tweet asking investors to sell their bitcoins at $18,000, Bitcoin proponent Peter McCormack tweeted Sunday:

Bitcoin has been trading about 27% higher since Peter Schiff advised you to sell your bitcoins. There is no gold.

While admitting that the price of bitcoin has risen since he advised people to dump their coins, Schiff claimed that he also advised people to sell their bitcoins when their price was well above $60,000. At the time of writing, Bitcoin is trading at $22,838.33, up about 35% over the past 30 days, while gold futures and spot prices are up about 7% over the same period.

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