One of the most debated issues since the main cryptomon currency gained international recognition is about the correlation of Bitcoin with gold. Currently, it is gaining importance because price movements could depend on it.
In a series of messages on the social network Twitter, Euro Pacific Capital CEO Peter Schiff said that for Bitcoin things will not go well in a short time. At the same time, he said that those who consider Bitcoin to be digital gold are making a mistake.
But Schiff’s views appear not to be entirely convincing, at least to Bloomberg analyst Mike Mcglone. He believes that the correlation between Bitcoin and gold is extremely strong.
Peter Schiff and the imminent sinking of Bitcoin below $9,000
The relationship between Bitcoin and gold, according to Peter Schiff, is reversed. In other words, as gold increases in value, cryptomone currency will tend to depreciate. The price of both assets seems to be going through a phase of stagnation. The precious metal is over $1,800 and the main crypt currency is struggling to pass $9,000.
However, Schiff does not see a simultaneous recovery of both as viable. Instead, he believes that one rises at the expense of the other’s fall. If this view were true, it would not take long for the price of Bitcoin to drop below $9,000 per currency.
„It appears that gold is reducing resistance just below $1,800 while Bitcoin is reducing its support just above $9,000. I expect both resistance and support to give way, with the gold price boom and the Bitcoin price collapse.
Anti-Bitcoin Militancy and Controversy
It is important to bear in mind that Peter Schiff is one of the strongest opponents of Bitcoin. Instead, he proposes that gold is and will remain the only significant reserve of value.
His views have generally been the focus of controversy among cryptology enthusiasts. For these, the correlation between Bitcoin Billionaire and gold goes far beyond the opinions of experts of the calibre of Peter Schiff. Some advocates of Bitcoin as „digital gold,“ answer Schiff with simple arguments about investment.
For example, in a past Twitter message on June 30, the analyst assumed in a question that an ounce of gold would soon be worth the same as a Bitcoin. Among the hundreds of responses, one user commented:
„If I had bought gold in 2012, at $1,900, today in 2020, I would still have the same $200 (loss?). But if I had bought a Bitcoin in 2012 at $50, I would have more than $8,000 now. Oh, with Bitcoin you can buy things, can you do the same with gold? Besides, can’t you counterfeit gold?“