Will Bitcoin go bankrupt? Peter Schiff chooses gold
Peter Schiff argues that Bitcoin may be more vulnerable to market risks than gold
Financial expert and critic of Bitcoin (BTC), Peter Schiff, warns of a decline in the value of risky assets such as digital currencies. At the head of this group of assets is the king of cryptocurrencies. In his latest tweet, Schiff predicts that inflation-hedging assets like gold will benefit from all the turmoil in the financial market right now. According to him, shares of companies that mine gold used to be shares of new technologies, which suggests a change in the direction of global investment. In this context, Schiff expresses his belief that investments in the yellow metal remain the best hedge against inflation we can take advantage of.
Peter Schiff says that gold is the best hedge against inflation
This is not the first time that Schiff's warnings have caused extreme reactions among investors. His persistent skepticism of Bitcoin as a long-term investment is well known in the cryptocurrency community and has been voiced many times in his tweets before.
Schiff has repeatedly emphasized that Bitcoin's rally is driven more by headlines than the real value of the asset. Moreover, Schrif emphasizes that BTC's trading volume is smaller than that of gold, which makes it more vulnerable to external threats.
This analyst in his previous tweets argued that despite the 20% increase in the BTC/USD rate after the recent change in Federal Reserve policy, gold still remains a much better hedge against inflation.
In turn, investors and supporters of the oldest cryptocurrency believe that risky assets, including BTC, have the potential for further growth. There are rational arguments that the king of cryptocurrencies can be an alternative hedge against inflation, especially in the face of difficult times in the financial markets faced by investors. However, considering all the arguments, according to Schif, Bitcoin is still heading towards zero.
Regardless of the words of experts dealing with commenting on financial markets, it should be remembered that investing always carries risk, and investments in risky assets are particularly susceptible to market volatility. The value of Bitcoin can go up or down significantly at any time. This can occur as a result of a number of events depending on individual factors, including market conditions, changing investment trends and government policies.
Due to the bankruptcies of well-known American banks, there was a discussion among investors about the most effective ways to protect failing economies. Peter Schiff also presented his opinion in this regard. This analyst is known as one of the biggest supporters of gold. In addition, Schriff is also considered one of the fiercest opponents of Bitcoin (BTC). According to this economist, the most important factor is the balance between regulations and banking institutions. His predictions should come as no surprise. This is primarily because regulators shut down his bank for “non-compliance” with the law.