Peter Schiff is not afraid to make extremely bearish calls on bitcoin. It appears that the chairman of SchiffGold sees the cryptocurrency as a competitor of gold. Recently, the gold bug took to Twitter to share his gloom and doom prediction on bitcoin.
The Crypto Twitter (CT) community was quick to respond to Schiff’s ultra bearish stance. One that caught our attention was from bitcoin bull Rampage. The trader contrasted the performance of bitcoin and gold over the last seven years. The gap in gains between the two assets should be more than enough for Peter Schiff to have a serious look at the king of cryptocurrencies.
Bitcoin is the best performing asset of the decade. It has outperformed every other asset out there. Since 2009, the dominant cryptocurrency grew by as much as 163,999 percent. Within the same time period, gold climbed by a measly 69 percent.
The difference in performance between the two assets is astounding that it baffles us to see Peter Schiff bashing the cryptocurrency. The facts are clearly not on gold’s side.
It appears that trader Rampage follows the same line of thinking. He focused on the performance of bitcoin and gold over the last seven years. Within this timeframe, the cryptocurrency ascended by 83,331.79 percent according to Rampage. On the other hand, gold is down by 20 percent.
Rampage wasn’t satisfied. The trader also contrasted the 20-year performance of gold to the nine-year performance of bitcoin.
Sure, gold would have given someone a nice 400 percent profit over the course of two decades. However, it just pales in comparison to the gains that bitcoin made in less than a decade.
Rampage carried on with his mocking of the gold bug’s call. He also applied Schiff’s technical analysis involving a head and shoulders reversal pattern on gold.
While trader Rampage was quick to point out bitcoin’s ascent, he also left out important variables in his analysis of bitcoin versus gold. So did Peter Schiff when he called on the collapse of the cryptocurrency.
We spoke to full-time traders and they agree that smart investors should have both gold and bitcoin in their portfolio.
For instance, Scott Melker, Crypto Trader at TxWestCapital said,
I think that a smart investor should have exposure to both.
Bitcoin has greater potential for price appreciation but is more volatile and could also fail as an investment. Gold is proven, safer, more stable.
Mati Greenspan, senior market analyst at eToro, agrees. When asked if bitcoin is a better investment than gold, the analyst replied,
Better? No. They’re different. I have both in my portfolio.
It appears that both assets have their own pros and cons. This is perhaps a reason for Peter Schiff to stop being so focused on gold and start considering bitcoin.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
This article was edited by Samburaj Das.
Last modified: October 22, 2019 13:25 UTC