Peter Schiff Calls Bitcoin Anti-Gold, Here's Why!

Peter Schiff called Bitcoin an 'Anti-Gold' (Photo; Doc. News Bitcoin)

JAKARTA - In recent years, Bitcoin has continued to dominate the conversation about the future of investment, especially as competitors for "digital gold." However, behind this optimism, financial analyst and observer Peter Schiff remains one of the strongest critics of the crypto asset. In his latest statement, Schiff called Bitcoin an "anti-gold" which, according to him, actually shows instability rather than a durability like gold.

This comment comes after a spike in the price of Bitcoin after the United States election, in which President Donald Trump's second win was cited as a trigger for positive sentiment for digital assets. Schiff considers Bitcoin to have no strong economic basis like gold and calls the price spike purely driven by market speculation.

As a financial analyst known for his harsh criticism of crypto assets, Peter Schiff views Bitcoin as the opponent of gold, which he says is a stable and reliable store of value. When the price of Bitcoin spiked after Trump's victory, the price of gold actually decreased. For Schiff, this is clear evidence that Bitcoin cannot be considered a stable store of value, especially when compared to precious metals that have been proven for thousands of years.

Quoted from Coingape, Schiff argues that Bitcoin cannot replace the gold function as a protective asset because of its high speculative character. Traders, according to him, are more motivated by political promises such as Trump's pro-crypto, than based on solid economic fundamentals. Schiff warned that this price increase shows how vulnerable Bitcoin is to market volatility.

"Bitcoin is just a speculative game," he said. "These traders don't buy Bitcoin for fundamental reasons, but rather for expectations of short-term gains driven by political sentiment."

In addition to its support for crypto assets, Trump also promised a number of policies that are considered to have a major impact on the market, one of which is cutting taxes, including eliminating capital gain taxes on Bitcoin. This policy was warmly welcomed by crypto advocates, who believe that this move will encourage more US citizens to invest in digital assets.

However, Schiff is skeptical of this plan, warning that the abolition of the tax could actually create unsustainable economic growth. He argued that tax cuts not accompanied by reduced government spending would increase the annual deficit. Schiff estimates that if this policy was implemented without budget cuts, the annual deficit could exceed $1 trillion and create great pressure on the United States economy.

"Tax cutting is easy," he said. "But we know from experience, cutting expenses is significantly very difficult to do."

Schiff warned that a high deficit, coupled with a low-interest rate policy from the Federal Reserve, could boost higher inflation. In this situation, he believes that traditional assets such as gold will be safer than volatile Bitcoin.