Does Peter Schiff's Assertion That Bitcoin and Gold Have Nothing in Common Hold Up? (Commentary)

Peter Schiff, the founder and chief strategist of Euro Pacific Capital, argues that Bitcoin isn't a digital version of gold, citing a recent 3% rise in gold and a 3% fall in Bitcoin. However, this argument might be flawed.

Bitcoin advocates liken it to gold, but not as a gold certificate or ETF. The Bitcoin white paper equates Bitcoin's limited supply and mining process to gold, as both require resources to increase circulation. Schiff insists that while gold has intrinsic value, Bitcoin relies on faith. However, gold's value is instrumental, not intrinsic, due to its properties and rarity. Bitcoin was designed to mimic these properties in a digital format.

In terms of investment performance, Bitcoin has not failed to uphold gold's reputation as a hedge against central bank policies, and, in many instances, has outperformed gold.