Well-known gold investor Peter Schiff has once again hit out at Bitcoin. According to him, the digital currency’s recovery to $114,000 is nothing more than a so-called dead cat bouncea temporary recovery that does not mark a real trend reversal.
Bitcoin is recovering, but lagging behind
Schiff points out that Bitcoin converted to gold is still 25 percent lower than in August. At the same time, gold and silver are breaking record after record. On Monday, gold rose above $4,080 and silver reached $51.60 per ounce.
After a massive liquidation of around $16 billion, Bitcoin fell from $122,000 to $100,600 in a short time last week. There has now been some recovery, but the Bitcoin price remains clearly below pre-crash levels. According to Schiff, this confirms that investors place too much value on volatility instead of stability.
In the past month, gold rose almost 10 percent in value, while silver gained more than 12 percent. Schiff argues that precious metals don’t need a rebound to prove their worth. He still calls Bitcoin “a bubble disguised as digital gold”.
Schiff advises investors to use any upswings in Bitcoin to sell. “Stop confusing volatility with value and switch to assets that have proven their strength for decades,” he said.
What do you think? Does Schiff have a point and is the idea that Bitcoin can function as digital gold just a hallucination? For now, at least, the market doesn’t seem to think so, as Bitcoin continues to outperform gold over the years.
Source: https://newsbit.nl/peter-schiff-herstel-bitcoin-in-termen-van-goud-is-slechts-tijdelijk/
