- Peter Schiff expressed disbelief in Bitcoin
- Advocating for gold, he reiterated its superiority over the king coin.
In a revealing interview on the Pomp Podcast, Peter Schiff, Chief Economist of Euro Pacific Asset Management and Chairman of Schiff Gold, shared his skepticism about Bitcoin’s (BTC) potential to reach the $100,000 milestone. Schiff argued that Bitcoin lacks sufficient upside compared to other investment opportunities. On the contrary, he believes gold and gold stocks have significantly more potential for growth.
“I don’t think it’s going to do well. I don’t think it has any value. That’s the problem.”
Bitcoin v. gold
Schiff believes that BTC has matured to a point where its growth prospects are limited. Meanwhile, gold stocks possess the potential to triple or quadruple in value due to their current undervaluation. Highlighting the last three years of Bitcoin’s performance, the exec added,
“It’s been going sideways now for three years. It almost hit 70,000 in 2021, right this is 2024, all the hype, all the promotions, I think these ETFs this was the last chance to sucker in new buyers.”
The ETFs initially led to a market rally, but subsequently recorded a sharp decline, shedding around 20% of their value shortly after their debut – A classic “sell the news” event. Despite this, the market recovered, achieving new highs, spurred by speculative optimism and events such as a Bitcoin ETF conference in Miami.
Schiff predicts that this would boost hype but not sustain long-term growth. In fact, he expressed pessimism about Bitcoin’s ability to break through its current resistance levels without a new catalyst.
Bitcoin is not a safe haven asset
Regarding the notion of central banks incorporating Bitcoin into their reserve assets as a hedge against potential sanctions or asset freezes, Schiff dismissed this idea outright.
He asserted,
“Bitcoin is not a safe haven, low volatile store of asset. If your currency were to come under attack, you wouldn’t be able to defend it with Bitcoin because Bitcoin can crash more than your currency.”
Central banks require assets with the capacity for immediate liquidation to support their currency in times of market stress. According to Schiff, BTC fails to meet this criteria. On the other hand, Gold stands out as a time-tested store of value that central banks can rely on without introducing additional volatility or risk into the equation.
BTC to $1 million?
When asked whether BTC can reach $1 million, the exec attributed such a possibility solely to hyper-inflationary scenarios. Schiff humorously commented on the presence of “dumb money” in the market, but considered it insufficient to drive Bitcoin to such heights.
Finally, the exec stressed that if it does go as high as $1 million, so will everything else. So, being a millionaire on paper will not equate to real wealth due to diminished purchasing power, Schiff concluded.
