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Bitcoin’s price relative to gold has fallen to levels similar to those seen nearly a decade ago, sparking a debate about how long the cryptocurrency has served as a store of value.
Key points:
- Bitcoin’s price against gold has fallen to 2017 levels, reviving doubts about its role as a store of value.
- Peter Schiff says gold and silver outperform Bitcoin as investors seek safety.
- Experts say that the behavior of investors has changed because of the amount of money that the government cannot control.
Economist and former critic of cryptocurrency Peter Schiff said that the price of Bitcoin is currently equal to 15.5 ounces of gold, down 57% from the peak in 2021, and only 10% above 2017 when measured against the precious metal.
in Posted on page X Schiff said that despite years of promotion and growing acceptance on Wall Street, bitcoin has failed to move beyond traditional safe havens.
Schiff says gold and silver surpass Bitcoin as a safe haven
He said many of those who have this money would be better off with gold or silver instead, pointing to the huge gains in precious metals at the same time.
Schiff’s comments come as gold and silver continue to attract interest rates amid political tensions and uncertainty over interest rates, while Bitcoin struggles to recover from recent losses.
“Most people who now have bitcoin would be better off buying gold or silver instead,” he wrote.
According to a report, Matt Hogan, chief financial officer at Bitwise, said that the rise in the price of gold above $5,000 per ounce and the growing uncertainty about the US cryptocurrency laws will create a defining moment for the digital economy markets.
Hogan said the combination of rising assets outside of government control and declining confidence in long-term clarity could impact cryptocurrency adoption and price action in the coming months.
Hogan said that almost half of the value of gold was created in the last 20 months, despite its history of thousands of years as a store of value.
He said that the move reflects the long-term effects of monetary policy, rising credit, and lower interest rates, but it also reflects a significant change in investor behavior.
“This shows that people no longer want to keep all their wealth dependent on the good of others,” Hogan wrote.
He also mentioned the growing uncertainty about the Clarity Act, legislation that aims to strengthen the cryptocurrency legal framework in the United States.
Bitcoin price drops as Federal Reserve warns and geopolitics affects appetite
The price of Bitcoin fell below $89,000 after a short-term retracement, affected by the economic crisis and the rise of international conflicts that have affected the risk economy.
According to analyst Samer Hassan of XS.com, the Federal Reserve is still somewhere in its political stance, as well as conflicts in the Middle East, reducing the importance of speculative money in cryptocurrency markets.
Market data shows a decline in business confidence. CoinGlass statistics show a 42% drop in open trading volume for cryptocurrency futures from recorded levels, with a modest attempt to offset a sharp sell-off.
Meanwhile, capital has shifted to traditional assets such as gold and silver, leaving the digital economy struggling to attract new entrants as volatility continues.
With Federal Reserve Chairman Jerome Powell indicating that there is no need to cut interest rates, and global risks pushing investors to tangible assets, analysts say bitcoin will remain a high-risk commodity until policy is eased or international tensions subside.
A note Peter Schiff says Bitcoin price against gold is close to 2017 levels despite “hype” appeared for the first time Cryptonews Arabic.
