Peter Schiff, a well-known gold investor recently tweeted that Bitcoin was not superior to gold. In his tweet, he was critical of Bitcoin loss of 48% of its value since its high in 2019. He compared BTC to gold and noted that gold had only lost 3% of its value since its high of 2019. He went on to say that, anyone who divested in gold and invested in BTC during its high 2019 had seen a drop of 54% in the value of their investment.
Criticism of BTC
Many Bitcoin enthusiasts have claimed over the years that BTC is a better store of value compared to gold since it offers a higher return on investment. For instance, they note that since the start of 2019, gold has grown in value by less than 20%.
In November, Schiff tweeted that Bitcoin prices would soon collapse to $1000 due to various factors. At the time, BTC was trading at around $7400. However, his prediction has yet to pan out; BTC is currently trading at around $7200. BTC will likely remain at this price range for the next few days.
This is not the first time that Schiff has made statements against BTC. The Bitcoin community has called him out numerous times for his bearish outlook on the future of BTC. In mid-December, he sarcastically tweeted that the Bitcoin collapse would be a good thing for millennials. According to Schiff, it would give them something to reflect on, as they grew older and learn from the hard lessons of losing their money.
Is BTC Going to Collapse?
There are many differing opinions on the future of Bitcoin. However, what many in the crypto community can agree on is that it is not likely to collapse as Schiff predicts. There are already numerous use cases being developed for crypto. Additionally, it is worth noting that only a small percentage of the world uses BTC or is even aware of BTC. This is not the case for gold, almost everyone who participates in the modern global economy is aware of the existence of gold. As more people join the BTC community, this will help to sustain its value.
In some cases, BTC is a better alternative to gold. For instance, gold is bulky and it has to be stored under specific conditions. In comparison, you can store your BTC on a hard wallet the size of a thumb drive.
Since its founding, many people have predicted the imminent collapse of BTC. However, that has not happened. BTC was recently named as the most valuable asset of this decade in terms of price appreciation. When it was created, BTC was worth just a few cents but today, it is worth over $7000.
It is, however, important to note that there is a lot of work that still needs to be done for BTC to gain mainstream adoption and compete at the same level as gold. This will include developing technologies that help to lower the cost of transactions and the number of transactions that can be supported on the BTC network.
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