In a recent discussion with Coinage, the well-known economist Peter Schiff forecasted that gold prices might soar to $7,000 or even higher. At the same time, he maintained his strong criticism of Bitcoin and the broader cryptocurrency market.
Often referred to as the “Golden Beetle” in financial circles, Schiff has increased his price target for gold following its rise beyond $5,000. Nevertheless, his primary attention remains fixed on Bitcoin—the dominant digital currency.
Schiff challenged a popular belief among Bitcoin enthusiasts—that gold’s price increases precede those of Bitcoin—labeling this idea as entirely incorrect. Drawing from recent trends and data, he presented several key observations:
He highlighted that while gold has consistently hit new highs since early 2024, Bitcoin’s value relative to gold (BTC/Gold) has declined by over 50% during the same period.
According to Schiff, branding Bitcoin as “digital gold” or “Gold 2.0” is misleading and amounts to a significant deception because he believes Bitcoin lacks intrinsic fundamental value.
He explained that Bitcoin’s climb toward the $100,000 mark is driven primarily by two factors unrelated to its technological merits or financial fundamentals. First, Wall Street’s involvement stems from an intent to capitalize on speculative trading demands rather than genuine confidence in Bitcoin itself. Second, former President Donald Trump’s public endorsement of cryptocurrencies was aimed at attracting crypto supporters’ votes and donations—actions which artificially inflated prices.
Schiff also criticized Michael Saylor—a prominent advocate for Bitcoin—arguing that despite billions invested over five years through MicroStrategy purchases, returns per share have underperformed compared with traditional benchmarks like the S&P 500 index. He further suggested that MicroStrategy may now be caught in a cycle resembling a Ponzi scheme.
Please note: This content does not constitute investment advice.