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On March 6th, the price of Bitcoin surged to $70,000, breaking the record set in November 2021. At the same time, the price of gold also reached a historical high, surpassing the peak in December last year.
However, economist Peter Schiff expressed skepticism about the recent price increase of Bitcoin, especially compared to gold. He pointed out that although Bitcoin reached a new high in terms of US dollars, it did not break the historical high when priced in gold.
Peter Schiff believes that this difference may weaken the argument for viewing Bitcoin as "digital gold" or a substitute for gold as the ultimate store of value. He also noted that in terms of the ratio between Bitcoin and gold, cryptocurrency still lags behind.
Peter Schiff's comments come at a time when Bitcoin is showing strong performance. In 2023, the price of Bitcoin saw a substantial increase, rising by over 155%, and after entering 2024, its increase has reached about 67%. The surge in Bitcoin is benefiting from the approval by the U.S. Securities and Exchange Commission (SEC) of spot Bitcoin exchange-traded funds (ETFs), further boosting confidence among institutional investors.
Although Peter Schiff is critical of Bitcoin, some market analysts like Larry Tentarelli remain optimistic about its potential. Larry Tentarelli expects that with the upcoming Bitcoin halving event, the price of Bitcoin is likely to surpass $100,000 by the end of the year. However, he also acknowledges that this prediction may be affected by changes in the yield of 10-year bonds.
The simultaneous record highs of Bitcoin and gold mark the first time in over a decade since the birth of Bitcoin. However, these two assets are influenced by traditional factors in very different ways—gold has long been seen as a safe haven asset and store of value, while the role of Bitcoin beyond speculative investment remains fiercely debated. |
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Post time 14-4-2024 07:10:02