Crypto-skeptic Peter Schiff agrees that Bitcoin’s rise contributed to a decline in gold’s popularity

Peter Schiff, the chief global strategist at Euro Pacific Capital and an outspoken opponent of cryptocurrencies, has argued that Bitcoin’s (BTC) surge has somewhat influenced investor interest in gold.

Schiff said in an interview with Kitco News on December 23 that, with gold trading sideways, disgruntled investors delved into Bitcoin after proponents advertised the cryptocurrency as the new digital counterpart of the precious metal supported by strong performance.

Schiff said that a number of organizations who were planning to invest in gold chose Bitcoin instead, citing the asset’s popularity in the mainstream financial media.

“Bitcoin performed well. Bitcoin was sold as digital gold, despite the fact that its value was rising and gold was stagnating. This was the primary selling factor. I believe that the margins diminished the demand for gold. “Perhaps there were institutions that would have purchased gold, but since Bitcoin was competing with gold, they did not purchase gold, and perhaps they did not purchase Bitcoin either,” he added.

Intriguingly, the investor added that despite Bitcoin gaining popularity at the cost of gold, the precious metal still has the upper hand and that the leading cryptocurrency is likely to lose all of its value.

He noted that Bitcoin was attracting “dump money” and that investors are going to suffer. Notably, Bitcoin’s considerable decline prompted Schiff to broaden his critique of the asset, indicating that the asset’s bubble had burst, and gold had regained its preeminence.

“During the same time that everyone was discussing Bitcoin, the smart money was purchasing gold. Bitcoin was mostly supported by naive capital. However, now that the Bitcoin bubble has burst and the air will continue to escape over the next several years, I no longer see this difficulty from a marketing standpoint for gold. Nobody is going to compare Bitcoin to gold; nobody is going to refer to it as digital gold,” he said.

Schiff said that there is no need to regulate the cryptocurrency industry because of the failure of several businesses in the industry, such as the FTX exchange scandal. Even with rules, he warned that situations like the FTX disaster will continue to occur.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.