Crypto skeptic Peter Schiff admits that gold has lost some interest due to the growth of Bitcoin

Peter Schiff, the chief global strategist at Euro Pacific Capital and an outspoken cryptocurrency skeptic, has suggested that the rise of Bitcoin (BTC) has partly influenced investor interest in gold.

According to Schiff, with gold trading sideways, frustrated investors have ventured into Bitcoin after proponents marketed the cryptocurrency as the new digital version of the precious metal aided by good performance, he said during an interview with Kitco News on December 23rd.

Schiff noted that even some institutions that should have ventured into gold have opted for Bitcoin, with the asset taking center stage in major financial media.

“Bitcoin was doing well. It was surging as gold went sideways, but Bitcoin was traded as digital gold. This was a whole selling point. <…> I think margins have taken some demand out of gold. I mean, maybe there were some institutions that were going to buy gold, but because Bitcoin was there competing with it, they didn’t buy gold, maybe they didn’t even buy Bitcoin,” he said.

Gold’s potential to go up

Interestingly, the investor said that despite Bitcoin posting interest at the expense of gold, the precious metal still has the upper hand, emphasizing that the flagship cryptocurrency is likely to completely lose its value.

He pointed out that the “downloaded money” has been sucked into Bitcoin and that investors are likely to lose. Notably, with Bitcoin correcting significantly, Schiff extended his criticism of the asset by suggesting that the bubble had burst, leaving gold to reclaim dominance.

“Meanwhile, smart money was buying gold all the while everyone was talking about Bitcoin. It was dumb money being sucked into Bitcoin. But, I think now that the Bitcoin bubble has burst and the air will come out in the next few years, I don’t see that problem from a marketing perspective for gold anymore. I mean, no one is going to compare Bitcoin to gold; no one will talk about it as digital gold,” he added.

Schiff on cryptocurrency regulations

With the collapse of the cryptocurrency industry’s registration of several entities such as the FTX exchange debacle, Schiff noted that there is no need to regulate the sector. He suggested that incidents like the FTX crisis would still be witnessed even with the regulations.

He likened the current situation to Bernie Madoff’s infamous Ponzi scheme, which occurred in a regulated environment and lasted longer than FTX. In his view, more regulation is likely to hurt the industry, suggesting that the lack of laws was the main selling point of cryptocurrencies.

In general, Schiff urged cryptocurrency investors to exit the market whenever an opportunity presents itself. As Finbold reported in August, the economist urged investors to take advantage of this and exit when the broader market experienced a relief rally that he called a “windy rally.”

Watch the full video below:

Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.

Add a Comment

Your email address will not be published. Required fields are marked *