Gold investor and longtime Bitcoin critic Peter Schiff has renewed his attack on the cryptocurrency.
He claims that Bitcoin should not be compared with traditional assets such as gold.
The bug made these responses in response to a post from crypto analyst Quinten Francois. “Gold is roughly 20 times larger than Bitcoin,” Francois wrote. “Global equities are roughly 100 times larger. Global real estate is more than 250 times larger.”
Schiff rejected that argument outright. “Bitcoin is not a real asset so its value has no relationship to gold, equities or real estate,” Schiff wrote. “Why can’t your brain understand that?”
Bitcoin is not an inflation hedge
Schiff has particularly focused on Bitcoin’s reputation as a potential hedge against inflation.
On Aug. 21, he disputed the argument that investors should turn to Bitcoin as protection against rising prices, writing: “I don’t think Bitcoin is an inflation hedge.”
He acknowledged that some investors view the cryptocurrency that way but dismissed the thesis. “I noted that other people think it is. They are wrong,” Schiff wrote. He argued that investors seeking protection against inflation should instead choose traditional precious metals.
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“Those choosing inflation instead of gold or silver are making the wrong choice,” he said.
Bitcoin’s performance has not persuaded Schiff to soften his position.
On Aug. 23, he responded to criticism that he had missed out on Bitcoin’s substantial appreciation. “Yes, I could have made a lot of money with Bitcoin,” he wrote. “But that’s old news.”
Instead, Schiff claimed that he had been better off avoiding Bitcoin over a longer period.
“Over the last five years or so I’ve been better off not owning Bitcoin,” he said. “It’s the Bitcoin HODLers who have left a lot of money on the table by not selling!”
AI is another threat to Bitcoin
As reported by U.Today, Schiff has also pushed back against attempts to associate Bitcoin with the AI boom.
“Bitcoin pumpers are trying to hitch Bitcoin to the AI wagon, hoping investors will see it as part of the AI trade,” Schiff wrote.
He claims that the relationships between the two could actually work in the opposite direction.
“They have it backwards,” he said. “AI isn’t bullish for Bitcoin; it’s a threat to it.”
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