Bitcoin will never replace gold as a store of value, economist argues By Investing.com

Investing.com – On March 6, the value of skyrocketed to 70 thousand US dollars, surpassing its previous record from November 2021 during the pandemic. Likewise, it reached a new all-time high of 2,145.37 US dollars, surpassing its previous high from December.

Economist Peter Schiff expressed skepticism about bitcoin’s recent rally, especially in comparison to gold. He highlighted that although bitcoin reached new heights in dollar terms, it did not do so when compared to gold.

Schiff argued that this difference could call into question the idea of ​​bitcoin as “digital gold” or as a replacement for gold as the main store of value. He noted that the cryptocurrency still lags behind the bitcoin-gold ratio, which compares the performance of the two assets.

Schiff’s comments come amid a strong performance for bitcoin, which has seen an increase of more than 155% in 2023 and has already accumulated about 67% in value by 2024. This increase coincided with the approval of exchange-traded funds (ETFs ) of bitcoin on the spot market by the SEC (US Securities and Exchange Commission), attracting the interest of institutional investors.

Schiff, who is critical of bitcoin, also questioned the representation of cryptocurrency in the media and the practicality of bitcoin ETFs.

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On the other hand, gold had a remarkable performance, closing the quarter at an all-time high. This increase is in line with gold’s reputation as a safe haven for investors in volatile markets.

Despite Schiff’s cautious view, analysts like Larry Tentarelli are bullish on bitcoin. Tentarelli, technical strategist at Blue Chip Daily Trend Report, predicts that bitcoin could surpass $100,000 by the end of the year, driven by the upcoming halving event. However, he also points out that this forecast could be affected by movements in the 10-year bond yield.

The record highs for bitcoin and gold mark the first time both have reached their peak values ​​simultaneously since bitcoin’s creation more than a decade ago. While the factors influencing each asset are different — gold has been seen as a safe haven and store of value for decades, while bitcoin’s role as anything other than a speculative investment continues to be debated.

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