Bitcoin critic Peter Schiff has once again sparked discussion on the never-ending gold vs BTC debate with his recent post on X, reiterating his stance on the two assets. His argument centered on the growing trend of global central banks favoring gold reserves over Bitcoin.
Gold Wins, Bitcoin Loses: Peter Schiff Explains Central Banks’ Choice
In his recent X post, Peter Schiff doubled down on gold as the ultimate safe-haven asset. Via his thread, Schiff, a vocal Bitcoin critic, once again emphasized gold’s superiority over BTC. Referring to the foreign central banks’ increasing adoption of the traditional asset as a reserve, he stated,
If gold is the past and Bitcoin is the future, why are foreign central banks that are preparing for a future where the U.S. dollar is no longer the reserve currency, replacing their dollar reserves with gold and not Bitcoin?
According to Peter Schiff, the growing trend of the precious metal becoming a reserve underscores its timeless value in the global financial system. In another post, Schiff criticized Americans for collecting Bitcoin at high prices. He asserts that Americans, who own nearly half of global Bitcoin and hold 40% of the supply, may be set up for significant losses as others cash out.
In a recent development, CERN scientists experimented with a lead-to-gold transformation. This sparked debate about the metal’s long-term value, with CNBC’s Ran Neuner predicting Bitcoin will outperform gold as a safe-haven asset.
Central Banks Accumulate Gold
Driven by US President Donald Trump’s tariff policies and the Dollar’s devaluation, global central banks are diversifying their reserves with gold. Russia’s 2022 invasion of Ukraine is another major factor contributing to the growing demand for the asset. According to a Reuters report, “This year’s demand from central banks [for gold] may be the highest in many decades.”
Following Russia’s Ukrainian invasion, central banks accelerated their gold purchases, buying over 1,000 metric tons annually – double the previous decade’s average. BofA commodity strategist Michael Widmer stated, “Emerging market central banks currently hold around 10% of their assets in gold. They should really hold 30% of their assets in gold.”
Notably, Russia’s central bank is a top gold holder globally. The country has stockpiled the metal from 2014 to 2020 to shield against Western sanctions. Meanwhile, the Ministry of Finance is believed to be quietly accumulating this asset from domestic producers. Reflecting this trend, foreign governments are accumulating the precious metal.
Pointing to this increased demand for the traditional asset, Peter Schiff questions why central banks wouldn’t opt for Bitcoin if it’s truly the superior reserve asset. In addition, Peter Schiff criticized the increasing use of stablecoins in the US amid regulatory uncertainty.
At press time, gold is valued at $3,357.4 per ounce, up 1.82% in a day and down 1.12% in a month. Meanwhile, Bitcoin is $108,148, down 2.31% in a day and up 17% in a month.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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