Economist Peter Schiff said Tuesday that Bitcoin (CRYPTO: BTC) was in a bear market and has failed to live up to its “hype” as a “Digital Gold.”
Bitcoin Lagging Gold, Says Schiff
In an X post, Schiff pointed out that, when priced in gold, Bitcoin is trading 20% below its highs set in August.
“Bitcoin is not living up to its hype,” he said. “Since Bitcoin is promoted as being digital gold, being down 20% in gold is more significant than being down 10% in dollars.”
Gold Vs. ‘Digital Gold’
Schiff’s argument had merit. Bitcoin has lagged lately, shedding 3.55% of its value during the week and 0.59% for the month. In contrast, spot gold has been making new highs more often, rallying by more than 11% in the last month.
| Cryptocurrency | Weekly Gains +/- | Monthly Gains +/- | Price in USD (Recorded at 1:30 a.m. ET) |
| Bitcoin | -3.55% | -0.59% | $112,109.54 |
| Spot Gold | +2.93% | +11.72% | $3,767.14 |
Moreover, it required 36.77 ounces of gold to buy Bitcoin at its all-time high in August, now down to 29.78 ounces.
| Cryptocurrency | Price in Gold ounces (Recorded at BTC ATH) | Price in Gold ounces (Recorded at 1:30 a.m. ET) | Gains +/- |
| Bitcoin | 36.77 | 29.78 | -19.01 |
See Also: XRP Tumbles 4% But One Launch Provides Bulls With Hope
The Larger Picture
However, not everyone was convinced. An X user, going by the pseudonym Bag Holder IQ, accused Schiff of “moving the goalposts” by measuring Bitcoin in gold over a shorter timeframe.
“BTC is still up triple-digits over gold in the past 5 years. Short-term underperformance doesn't erase the long-term trend,” the user said.
Compared over a five-year timeframe, Bitcoin was indeed up 477% in terms of gold, according to Trading View.
Schiff, a gold bug and vocal Bitcoin critic, has repeatedly questioned the apex cryptocurrency’s underperformance vis-à-vis the precious metal. He attacked the “Digital Gold” narrative touted by Bitcoiners.
Bitcoin advocates such as Arthur Hayes and Michael Saylor have defended its trajectory, urging investors to "readjust their perspective" and focus on the bigger picture. In fact, Saylor said that the ongoing consolidation is “normal” for Bitcoin's life cycle
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
