a different perspective on gold and bitcoin

Peter Brandt entered X into a discussion with Peter Schiff. It was about the latter's approach to gold and bitcoin.

Peter Brandt, Peter Schiff, gold and bitcoin

Peter Schiff is a fanatical fan of investing in gold. At the same time, he criticizes bitcoin with equal zeal. Now he took advantage of the fact that precious metals are becoming more expensive and there is a sideways trend on the cryptocurrency market, and he criticized BTC again.

Schiff emphasized in a post on BTC ETFs lost 5% of their value. Meanwhile, Microstrategy stock (MSTR) fell 16%.

This probably means a major change. I expect gold's rise and bitcoin's decline to accelerate. Don't say I didn't warn you!

– he wrote in the post.

But this is quite childish behavior. This was noticed in a subtle way by Peter Brandt, who wrote on X:

Peter, look at the bigger picture. I also like gold (…), but which racehorse has performed better since the inception of BTC?

He pointed to dry data:

Over the past 50 years, the price of gold has increased at a CAGR (compound annual growth rate) of 5.2%, barely exceeding the US Consumer Price Index.

Brandt is not a fanatic like Schiff. He uses only dry data. Without emotions. Despite this, in February he raised his price target for bitcoin in the current bull cycle to $200,000.

Conjuring reality

Schiff next on Saturday post on X indicated the better performance of gold compared to bitcoin:

On October 21, 2021, purchasing one bitcoin required 37 ounces of gold. Today it only takes 29. That's a 22% decline, making it an official bear market.

He added that BTC “has underperformed gold over the last 2.5 years.”

Then he had a vision of the future:

Between 2000 and 2011, the price of gold rose from less than $400 to over $1,900. It was a 5x move. A similar move from the breakout from around 2,000. USD will send the (price of) gold to USD 10,000. Given the currently much weaker fiscal situation in the United States and the potential for greater QE (quantitative easing), the next move should come much sooner.

However, this all sounds very naive. Schiff is probably quite desperate now, which is why he has such… strange visions. Another thing, however, is that bitcoin can grow “5x” in a year, not a decade. Therefore, investing in it is still a better solution than investing in royal metal.

The above text does not constitute investment advice.