According to Schiff, with gold trading sideways, frustrated investors ventured into Bitcoin after proponents marketed the cryptocurrency as the new digital version of the precious metal aided by good performance, he said during an interview with Kitco News on December 23. Schiff noted some institutions that were to venture into gold also opted for Bitcoin, with the asset taking center stage in the mainstream financial media.
Gold’s potential to rise
Interestingly, the investor stated despite Bitcoin recording interest at the expense of gold, the precious metal still has the upper hand while stressing that the flagship cryptocurrency is likely to lose its value completely. He pointed out that the ‘dump money’ was being sucked into Bitcoin, and investors are likely to lose. Notably, with Bitcoin correcting significantly, Schiff extended his criticism of the asset suggesting the bubble had popped, leaving gold to regain dominance.
Schiff on crypto regulations
With the cryptocurrency sector recording collapse of different entities like the FTX exchange debacle, Schiff noted that there is no need for regulating the sector. He suggested that incidents like the FTX crisis would still be witnessed even with regulations. He compared the current situation to the infamous Bernie Madoff Ponzi scheme, which occurred in a regulated environment and lasted longer than FTX. In his view, more regulations are likely to hurt the industry while suggesting that lack of laws was the main selling point of crypto. In general, Schiff has urged crypto investors to get out of the market whenever an opportunity arises. As reported by Finbold back in August, the economist called investors to take advantage and exit when the general market experienced a relief rally which he termed a ‘sucker rally.’ Watch the full video below: Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
