Gold bug and crypto critic Peter Schiff has bashed investors fleeing to bitcoin as a “safe haven” asset.
On the same day that bitcoin prices broke above $7,300 for the first time since crashing in mid-March, gold bug Peter Schiff took to Twitter to bash cryptocurrency investors. In particular, he took issue with the notion that bitcoin could one day be considered a “safe haven” asset in response to traditional market volatility.
He argued that investors would continue to support proven safe haven assets rather than taking a chance on the speculative nature of bitcoin.
Investors seeking a real safe haven will never buy a speculative asset on the chance that it may eventually become a safe haven. Since anyone doing so is speculating, the only people who will ever buy #Bitcoin are speculators, which is why Bitcoin will never become a safe haven.
— Peter Schiff (@PeterSchiff) April 7, 2020
Schiff argued that gold, compared to bitcoin, is not a purely speculative asset and has real-world utility as a store of value.
You obviously don't understand what “utility” is. If you did you would know that gold has it and Bitcoin does not!
— Peter Schiff (@PeterSchiff) April 7, 2020
Schiff also predicted the US would switch back to a conventional monetary system based upon gold. His comments come just weeks after the US government announced an unprecedented stimulus package to bolster the economy, which included the printing of $2 trillion in new fiat to support businesses and families affected by the coronavirus pandemic.
What's unconventional is the fiat monetary system we have had since 1971. We are about to a conventional monetary system, which is one based on #gold.
— Peter Schiff (@PeterSchiff) April 7, 2020
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