One of the most famous gold proponents that also makes headlines for his bitcoin rants, Peter Schiff, is currently in a tricky situation. He found himself at crossroads when Peter McCormack pointed out that his site, Schiff Gold, lets people buy gold using bitcoin several other altcoins.
Schiff takes every moment that he gets to criticize bitcoin and claims that it is neither a form of money nor a store of value. He says that bitcoin’s meteoric rally is pushed only by the hype that is created by its proponents. Nevertheless, the latest discovery about his site accepting bitcoin payments is believed to have dented his claims about the flagship crypto.
Bitcoin has so far managed to double its 2017 all-time high of just under $20,000. This rally saw many institutional investors finally jump on the bandwagon as the scarcity factors come into play. On the other hand, Schiff insists his passive stand on bitcoin even when several institutions have reduced their exposure to gold and divested their money into bitcoin.
Gold Trails Bitcoin As A Hedging Asset Choice
At the beginning of the COVID-19 pandemic, gold outperformed bitcoin. This trend continued all through the first quarter of 2020 but from Q2 2020 gold started to lose its shine in the eyes of institutions. Its price continued to slide despite institutions seeking a hedge as the global economy started to implode.
Bitcoin turned into the growing choice for many institutions and some like MicroStrategy changed almost $1.5 billion of their treasury into bitcoin which has already turned into $2.3 billion in valuation.
Peter Schiff can continue denying bitcoin’s strengthening influence as a store of value, but his son disagrees and is a big-time bitcoin proponent. He forced Schiff to invest in the top crypto some years back. Many analysts and commentators also believe that the gold proponent may just be playing all along and probably hold a large portfolio in bitcoin himself.