Bitcoin's 6% Drop Prompts Peter Schiff Commentary: 'It's A Fake Asset'

Zinger Key Points
  • Peter Schiff highlights Bitcoin's sudden 3,000 drop in 10 minutes, equivalent to a 100 drop in gold, noting gold's slight price increase.
  • Schiff's skepticism about Bitcoin's comparison to gold contrasts with Mark Yusko's bullish $150,000 Bitcoin prediction.

Economist Peter Schiff took to social media to compare Bitcoin’s abrupt fall to the stability of gold.

What Happened: On Tuesday, Schiff highlighted that the sudden drop in Bitcoin’s value, which fell over $3,000 in 10 minutes, has more risk than reward in comparison to gold.

This is equivalent to a $100 drop in the price of gold within the same timeframe. However, he noted that gold’s price had actually increased slightly and that ETF investors “are trapped” until the market opens.

He also mentioned a comment from CNBC’s Joe Squawk, who expressed surprise at gold’s price increase, to which Schiff responded confidently, “I know exactly what it means!”

Schiff went on to say that Bitcoin “means different things to different people” and that CNBC “can’t figure out” if it is a risk-on or risk-off asset.

Schiff’s conclusion: “That’s crazy; it’s a fake asset.”

See Also: Bitcoin Poised For Historic ‘Breakout’ With This One Last Step, Top Crypto Analyst Predicts

Why It Matters: Schiff’s comments come in the wake of his recent prediction of a significant surge in commodity prices. He has previously expressed skepticism about Bitcoin’s comparison to gold, despite the cryptocurrency’s recent record run.

His views contrast with those of Mark Yusko, CEO and chief investment officer of Morgan Creek Capital Management, who recently predicted a $150,000 value for Bitcoin within a year. Yusko also advocated for a 1% to 3% allocation to Bitcoin in one’s portfolio.

As these differing views show, the debate over the stability and potential of Bitcoin versus gold continues to be a hot topic in financial circles.

What’s Next: The appeal of Bitcoin as an institutional asset class is a topic expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Elon Musk’s Potential Repeat Of Dogecoin Move Prompts Crypto Analyst To Say, ‘In Before He Runs It Back’

Image: Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Posted In: Cryptocurrencybenzinga neurobitcoin ETFExpert IdeasPeter SchiffStories That Matter
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