© Reuters
Investing.com – Bitcoin is now racing toward new highs with institutional inflows through ETFs from major global investment funds. It is also taking off, but it is a weak start compared to Bitcoin.
Traders have often compared Bitcoin to gold, and some consider Bitcoin digital gold, due to the limited availability of Bitcoin as there is a cap on its mining, so there cannot be an infinite amount of it like gold.
But others see it as a purely speculative asset due to the huge price fluctuations. The digital currency was recently able to displace it as the 17th largest currency in the world.
But Peter Schiff, one of the world’s largest gold supporters, believes that Bitcoin’s rise based on fund movements is just a bubble, and it will burst with the gold rally, when investors withdraw their money from Bitcoin investment funds and turn to gold. “Bitcoin has become a bet against gold,” he says.
In a post on social media site X, Schiff wrote:
“Gold stocks are one of the main sources of increased inflows into Bitcoin ETFs. The gold rally will burst the Bitcoin bubble.”
“To explain the weakness in gold stocks, we can say that investors are selling them to buy shares in Bitcoin ETFs.” He continued: “This means that Bitcoin has become a bet against gold. So when gold explodes in price, money will shift to buying gold stocks and exiting Bitcoin ETFs.”
He continued: “Unfortunately for buyers of Bitcoin funds, the amount of money that will exit will be greater than what entered the funds, and selling will cause the price of Bitcoin to collapse. Therefore, most buyers of gold stocks will come from other sources.”
“When an asset’s rise turns into a bubble, there is a fundamental value for the asset other than the overprice (overpricing). But Bitcoin has no intrinsic value, so we are facing an asset bubble with no real assets. “The biggest bubble that grew and didn’t stop and lasted longer than it should have.”
Do you agree with Peter Schiff’s view on Bitcoin?
Know the fair value of each stock and get pre-made investment stock lists with guaranteed profits, as well as historical and live data and important notes for each stock with the InvestingPro platform. All you have to do is sign up and type the name of the stock to get everything you need. Learn more about the InvestingPro tool here
You can get an additional 10% discount when using the sapro2 coupon with all packages for one or two years with the Pro and Pro Plus tool. To subscribe, click here
If you encounter any problem using the coupon, you can contact support immediately from here
2024-03-01 19:40:00
#American #Billionaire #Bitcoin #Bubble #Burst #Investing.com
