CEO of Euro Pacific Capital in an interview on Wednesday has made his support for gold over bitcoin open, and in fact, called an investment in gold “a safe haven” while the current increase in price seen in bitcoin is a mere bubble.
Schiff, during the interview, clarified that while gold is of real value proposition, bitcoin, on the other hand, is a mere bubble under the influence of a few people controlling millions of others in a buy/sell order struggle. In his statement on Wednesday, Schiff expressed that “the people are gambling with cryptocurrencies”. In the process, according to Schiff, the recent bull trend in the price of bitcoin was built around two categories of people: a majority consisting of people struggling to buy bitcoin and secondly, a few people selling the asset. He continued by saying,
” don’t think that people that are buying bitcoin think they are doing something safe or conservative. They are buying bitcoins because they think the price is going to the moon, therefore, speculating…” On the other hand, “…people are finally buying gold because they are waking up to reality, something they should have known a long time ago…”
Bitcoin Versus Gold
Bitcoin and gold have recently shown a drastic increase in price and also a considerable bullish instability. Typically, as instability and risk rise, so does the respective prices of bitcoin and gold. Both assets have shown similar dynamics this week and have caused major turbulence between the two major world economies; China and the United States.
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Amidst the heat of arguments based on the bitcoin versus gold struggle, a “cold war” of tweets have also erupted on social media like Twitter. Nouriel Roubini took to his Twitter account to down talk bitcoin and cryptocurrencies in general. In his tweet,
“How can one believe ANY of these figures when 95 percent of all bitcoin transactions on a typical exchange is fake? Fake-coins, shit-coins, fake-transactions, fake pricing. The only true thing in crypto space is manipulation, pump n dump, front-running, wash trading, etc…” Somehow linking BitMEX in the tweet.
How can one believe ANY of these figures when 95 percent of all bitcoin transactions on a typical exchange are fake? Fake-coins, shit-coins, fake-transactions, fake-pricing. The only true thing in crypto space is manipulation, pump n dump, front-running, wash trading, etc... https://twitter.com/BitMEXResearch/status/1143905016606056448 …
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However, the tweet didn’t sit down well with Arthur Hayes @cryptoHayes who promptly gave a counter response within a few hours interval. In Arthur’s words on Twitter,
“Maybe you should speak with my private bankers they will inform you BitMEX don’t fake shit. Can’t wait to see you in Taipei XOXO.”
Both bitcoin and gold continued to show wide variance positive price movements, unraveling new surprises by the days. A lot of speculations are flying around and speculators of both assets remain very curious as to what would become of these rival assets within the next few months.