Crypto-skeptic Peter Schiff admits gold has partly lost interest due to Bitcoin’s growth

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Peter Schiff, chief global strategist of Euro Pacific Capital and a cryptocurrency skeptic, suggested that the rise of Bitcoin (BTC) has partly impacted investor interest in gold.

According to Schiff, with gold trading on the side, frustrated investors ventured into Bitcoin after proponents marketed the cryptocurrency as the new digital version of the precious metal aided by strong performance, he said. he said during an interview with Kitco News on Dec. 23.

Schiff noted that some institutions that were to venture into gold also opted for bitcoin, the asset taking center stage in the mainstream financial media.

“Bitcoin was working well. It was rising as gold went sideways, but Bitcoin was traded as digital gold. It was quite a selling point. <…> I think the margins took away some of the demand for gold. I mean maybe some institutions would have bought gold but because bitcoin was competing against it they didn’t buy gold, maybe they didn’t buy bitcoin neither,” he said.

Upside gold potential

Interestingly, the investor said that despite Bitcoin’s interest at the expense of gold, the precious metal still has the upper hand while pointing out that the flagship cryptocurrency is likely to lose its value completely.

He pointed out that “dump money” is being sucked into Bitcoin and investors are likely to lose. Notably, with Bitcoin’s significant correction, Schiff extended his critique of the asset suggesting that the bubble had burst, letting gold regain its dominance.

“Meanwhile, smart money was buying gold all the time everyone was talking about bitcoin. It was dumb money that was being sucked into bitcoin. But, I think now that the bitcoin bubble has burst and that over the next few years the air is going to come out, I don’t see that problem anymore from a marketing standpoint for gold. I mean, nobody’s going to compare Bitcoin to gold; nobody’s will speak of it as digital gold,” he added.

Schiff on Crypto Regulation

With the cryptocurrency industry recording the collapse of different entities like the FTX exchange debacle, Schiff noted that there was no need to regulate the industry. He suggested that incidents like the FTX crisis would still be seen even with regulations.

He compared the current situation to the infamous Bernie Madoff Ponzi scheme, which happened in a regulated environment and lasted longer than FTX. In his view, more regulations risk harming the industry while suggesting that the lack of laws was the biggest selling point of crypto.

In general, Schiff urged crypto investors to pull out of the market whenever an opportunity presents itself. As Finbold reported in August, the economist called on investors to take advantage and exit when the broad market saw a relief rally he called a “sucker recovery.”

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