Peter Schiff, the well-known gold proponent who is often in the headlines for his Bitcoin rants has found himself in a tricky situation when Peter McCormack pointed out that his website Schiff Gold allows people to purchase gold using bitcoin and a few other altcoins.
— Peter McCormack (@PeterMcCormack) January 22, 2021
Schiff who is often seen criticizing bitcoin and claims of it being a form of money or store of value most of the time is an avid gold bug who believes the only reason behind bitcoin’s growth is the hype created by its proponent. However, the recent discovery about his website accepting bitcoin for sure dent his claims about the top cryptocurrency.
The reason a one-ounce gold coin is twice as valuable as a half-ounce gold coin is that you can make twice as much jewelry with an ounce of #gold as you can with a half ounce. Since you can't make anything out of a Bitcoin, a full #Bitcoin has no more value than half a Bitcoin.advertisement
— Peter Schiff (@PeterSchiff) January 22, 2021
Bitcoin has managed to more than double its 2017 all-time-high of $20,000 which also forced saw many institutions to finally jump on the bandwagon as the scarcity factor kicks in. Schiff on the other hand has maintained his passive stance on BTC throughout even when a few institutions have cut their exposure in gold to invest in Bitcoin.
Gold Falls Behind Bitcoin as Choice of Hedging Asset
At the start of the outbreak of the coronavirus pandemic, gold performed outperformed bitcoin in the first quarter of 2020 registering it’s all-time-high, however second quarter onwards gold started to lose its luster in the eyes of institutions as its price continued to tumble despite institutions looking for a hedging asset as the world economy started to crumble.
Bitcoin emerged as the growing choice for many institutions and the likes of MicroStrategy even converted nearly 1.5 billion dollars of their treasury into bitcoin which has already turned into $2.3 billion in valuation.
Peter Schiff might continue to deny Bitcoin’s growing influence as a store of value, but his son, funnily enough, disagrees with him and is a big-time Bitcoin proponent who also forced Schiff to invest in the top cryptocurrency back in the day. Many also speculate that the gold proponent might just be playing all along and might hold a significant portfolio in Bitcoin himself.