The results that Bitcoin is posting are hard to ignore, even by the most hardened of skeptics. Popular Bitcoin skeptic and gold bull, Peter Schiff has admitted to Bitcoin’s impressive track record against gold, which by implication means he recognizes that there is a chance Bitcoin could unseat gold as the de facto safe-haven investment against inflation.
In a recent tweet, Schiff – the founder, chief economist, and global strategist of Euro Pacific Asset Management – posed questions to the Bitcoin community that cast doubts on why Bitcoin proponents thought the asset was better than gold.
While admitting that Bitcoin has outperformed gold in the last 10 years as well as other traditional assets, he doubts Bitcoin is better than gold or stocks and real estate as an investment. However, the questions raised shows that he places Bitcoin above Ethereum.
“Bitcoin beating #gold over the past ten years doesn’t prove it’s better than gold. Bitcoin has beaten every traditional asset class over that time period. Does that prove Bitcoin is better than stocks or real estate? #Ethereum beat Bitcoin over the past six years. Is it better?”
The popular Bitcoin skeptic has also previously admitted that he regrets not investing in Bitcoin. While speaking with Natalie Brinell on her Coin Stories podcast earlier this month, the economist reluctantly admitted that he should have bought some Bitcoin when he first heard about it in 2011. Despite his negative stance on the pioneer cryptocurrency, he claims that is one of his financial regrets.
“Clearly, I wish I had bought bitcoin when I first heard about it – that was a keen mistake,” he said, adding “I could have been one of the bitcoin billionaires now, as obviously I knew about it early on. If I could go back in time, that’s one of the things I would do.”
His regret is not incomprehensible as analysts have noted that Bitcoin is replacing gold in the portfolio of investors as market trends indicate. Bloomberg’s Mike McGlone stated that Bitcoin is replacing gold, despite opposition from regulators, in much the same way as the U.S. dollar gained dominance. The factor he attributed to this is the fact that Bitcoin market growth was being propelled by the “digitization of money” movement. He noted these as his key takeaway from the recent “Bretton Woods: the Realignment” Conference.
This was also observed a while back when the volatility of Bitcoin was still the cause of a lot of concern to observers as even Fed chair, Jerome Powell admitted that Bitcoin was more likely to be a substitute for gold than a substitute for the dollar back in May.
Overall, the long-term sentiments of market participants are still in favor of Bitcoin’s dominance over gold. One market participant, Dan Held – the Growth Strategist at cryptocurrency exchange, Kraken – asserted that Bitcoin will overtake the $10 trillion market cap of gold. By his estimates, when this happens, the price of 1 Bitcoin will be around $475,000.
Data also supports Bitcoin outperforming gold. The ROI of Bitcoin year to date has been up 68% while gold is down 4% according to Case Bitcoin.