Peter Schiff: Everybody Missing This Because of Bitcoin
A well-known gold advocate and Bitcoin critic Peter Schiff recently pointed out that gold has reached yet another record high. However, Schiff claims that because of their attention on Bitcoin the majority of investors are still mainly ignorant of this important factor.
He contends that investors are being blind to the way gold has performed and the important signal it is providing—that monetary policy is too loose and inflation is about to spike higher. However a large portion of the market is now interested in Bitcoin. The price of the cryptocurrency has been falling within a channel despite attempts to break above significant resistance around $70,000. Despite some positive movement recently the price of Bitcoin is still stuck in a bearish channel.
Without a breakout the upper resistance holds firm and Bitcoin may retrace to important levels at or near $60,000 or even $58,000. Gold keeps moving higher in the meantime. The chart displays a consistent upward trend that is backed by copious buying activity. Gold is proving to be a reliable conventional store of value with its new high of over $2,615 especially as worries about inflation increase.
Investors continue to disagree on the comparison of Bitcoin and gold. In the current economic climate gold which has a long history of serving as an inflation hedge is sending out clear signals. However Bitcoin also known as digital gold has experienced greater volatility even though it has previously shown promise as an inflation hedge.
Peter Schiff quite often reminds everyone in the community that Bitcoin is inferior to gold and shouldn’t take so much attention away from it. However, gold is clearly losing to Bitcoin in terms of returns and volatility, which makes it a less risk-on asset and more of a store of value.
