Gold investor and longtime Bitcoin critic Peter Schiff has renewed his criticism of the cryptocurrency, arguing that Bitcoin should not be compared with established assets such as gold, equities or real estate.
Schiff was responding to a post by crypto analyst Quinten Francois, who highlighted the relative size of major asset classes. “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 the comparison. “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?”
Peter Schiff rejects Bitcoin as an inflation hedge
Schiff has repeatedly challenged Bitcoin’s reputation as a potential hedge against inflation. On Aug. 21, he disputed the argument that investors should buy Bitcoin to protect their portfolios from rising prices.
“I don’t think Bitcoin is an inflation hedge.”
Although Schiff acknowledged that some investors view Bitcoin in that way, he dismissed the idea. “I noted that other people think it is. They are wrong,” Schiff wrote. He argued that investors seeking inflation protection should choose traditional precious metals instead.
“Those choosing inflation instead of gold or silver are making the wrong choice,” he said.
Bitcoin’s market performance has not persuaded Schiff to change 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.”
Schiff instead claimed that he had benefited from 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!”
Schiff says AI could threaten Bitcoin
As reported by U.Today, Schiff has also rejected efforts to link Bitcoin to the artificial intelligence 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 argued that the relationship between Bitcoin and artificial intelligence could work in the opposite direction.
“They have it backwards,” he said. “AI isn’t bullish for Bitcoin; it’s a threat to it.”
