U.Today – Well-known gold advocate and critic Peter Schiff recently noted that gold has hit another all-time high. However, Schiff claims that since they have their attention focused on Bitcoin, most investors are still ignoring this important factor.
Schiff argues that investors are blind to gold’s performance and the important signal it is providing: that monetary policy is too loose and inflation is about to soar. However, a large part of the market is now interested in Bitcoin. The cryptocurrency’s price has been falling within a channel despite attempts to break through the important resistance around $70,000. Despite some positive moves recently, Bitcoin’s price is still stuck in a bearish channel.
Without a breakout, the overhead resistance holds firm and Bitcoin may retrace to important levels at or near $60,000 or even $58,000. Meanwhile, gold continues to rise. The chart shows a steady uptrend that is supported by abundant buying activity. Gold is proving to be a reliable conventional store of value with its new high above $2,615, especially as inflation concerns mount.
Investors are still divided on the comparison between Bitcoin and gold. In the current economic climate, gold, which has a long history of serving as a hedge against inflation, is sending clear signals. However, Bitcoin, also known as digital gold, has experienced increased volatility despite previously showing promise as an inflation hedge.
Peter Schiff often reminds everyone in the community that Bitcoin is inferior to gold and that it should not be overlooked. However, gold is clearly losing to Bitcoin in terms of profitability and volatility, making it a less risky asset and more of a store of value.
This article was originally published on U.Today
