Bitcoin Vs Gold: Peter Brandt Comments On BTC’s Underperformance

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As a seasoned investor with over two decades of market experience under my belt, I find myself intrigued by this ongoing Bitcoin vs Gold debate. Having witnessed the dot-com bubble, the 2008 financial crisis, and now the digital asset revolution, I’ve learned to appreciate the nuances that separate store of value assets like gold and Bitcoin.

Veteran trader Peter Brandt has reignited the Bitcoin vs Gold debate, highlighting how the flagship crypto has performed against gold. Renowned economist Peter Schiff has also fuelled this debate by arguing that gold deserves more attention than BTC.

Bitcoin Vs. Gold: How BTC Is Performing

In a recent post on X, Peter Brandt argued that Bitcoin hasn’t shown significant advancement against gold over a span of nearly four years (42 months). He pointed out that Bitcoin continues to fall short of its peak in March 2021 and the double peaks it reached during that year.

Currently, Bitcoin’s price hasn’t surpassed its previous record peak of approximately $73,000 set in March this year, whereas the price of gold has continued to climb, hitting a new all-time high of around $2771. These two assets, often seen as a form of value preservation, have been frequently compared by experts due to their similar roles.

Some specialists contend that the leading cryptocurrency holds a competitive advantage over gold, despite being referred to as ‘digital gold.’ Furthermore, Peter Brandt emphasized their importance by stating that these assets are engaged in a significant fight against the devaluation of traditional currency, positioning themselves in the ‘heavyweight division.’

Despite Bitcoin’s poor performance compared to gold, gold appears to be fulfilling its promise as a reliable store of value. Additionally, some argue that cryptocurrencies tend to mirror the stock market, suggesting that they are seen by investors not just as a protective measure against inflation, but also as risky assets.

Peter Schiff Also Fuels The Debate

Economist Peter Schiff, a supporter of gold, has ignited the discussion between Bitcoin and gold. With Bitcoin surging past $71,000 for the first time in four months, Schiff pointed out that gold is nearing another record high, just under its all-time peak. However, Schiff noted that this won’t draw much attention due to Bitcoin trading back above $71,000 once more.

An economist suggests that gold deserves greater focus than it’s getting right now, particularly as it hits record highs while Bitcoin strives to surpass its all-time high of $73,000. Yet, even with Schiff’s doubts, it’s important to note that Bitcoin, in its success, has become a target itself.

Previously this year, Bitcoin achieved an all-time high (ATH) prior to the halving event in April, which is uncommon because it usually surpasses its ATH following the halving. This unexpected move has had a significant impact on Bitcoin since analysts like Rekt Capital believe that such a long consolidation period was necessary for Bitcoin to align with past halving cycles.

Despite being around for quite some time now, Bitcoin has soared by more than 62% in value this year, compared to gold which has only increased by a little over 33% since the beginning of the current year.

Additionally, it’s noteworthy that Peter Schiff has broadened the discussion between Bitcoin and gold to include their respective stocks. Specifically, he compared MicroStrategy to gold mining stocks. He pointed out that the value of MicroStrategy’s stock (MSTR) surpasses the total value of all other gold mining companies’ stocks except for Newmont.

Nevertheless, Schiff expressed doubts about MicroStrategy’s worth and predicted a potential price drop in the near future. Despite being one of the top-performing assets this year, outshining Bitcoin and gold.

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2024-10-29 18:00