TL:DR Breakdown
- Peter Schiff argued that large investors would buy more Gold than Bitcoin will inflation erupts.
- The Gold fanatic had categorized the yellow metal as a better store of value and money than Bitcoin.
Once again, one of the many vocal opponents of Bitcoin (BTC), Peter Schiff, took to his Twitter handle to relay another striking opinion about Gold’s supremacy over the leading cryptocurrency in terms of a better hedge against inflation. Just recently, he disparaged PayPal’s move into the cryptocurrency market, saying that the company’s “foray into Bitcoin is a gimmick designed to provide a short-term boost to Bitcoin’s price.”
Peter Schiff rates Gold as a better hedge
Notably, several recent reports in the cryptocurrency industry noted that institutions and deep-pocketed investors have been flocking into the market. This is evident amid the exponential growth across many institutional-grade platforms like Grayscale Investments, including derivatives platforms like the Chicago Mercantile Exchange (CME). Reports also provided instances where wealthy figures recently admitted to buying Bitcoin.
However, the chairman of Euro Pacific Capital, Peter Schiff, said in the tweet that most buyers are “small speculators and a few fund managers who are taking advantage of them.” He also argued that these current buyers – institutions and large investors – are only buying Bitcoin because they are less worried about inflation. Peter Schiff gave the “low bond yields” as evidence.
When these people finally get worried, they would purchase more Gold and not Bitcoin, according to him.
Large investors and institutions are still not worried about inflation, as evidenced by low bond yields. When they finally start to worry, they will buy #gold, not #Bitcoin. The main buyers of Bitcoin are small speculators and a few fund managers who are taking advantage of them.
— Peter Schiff (@PeterSchiff) November 24, 2020
PayPal foray to Bitcoin is a gimmick
On November 23, the Bitcoin critic flagged PayPal’s decision to allow the purchase and sales of Bitcoin as a gimmick, saying that the leading digital payment platform would have allowed Gold if it really wanted to provide users an alternative and reliable store of value.
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