In a recent tweet, crypto critic Peter Schiff stated that he would choose gold over Bitcoin, as the precious metal is a proven store of value over time. Schiff, who has been a vocal skeptic of cryptocurrencies, believes that Bitcoin’s value is derived solely from hype and speculation rather than inherent value. He also criticized the energy consumption required to mine Bitcoin and questioned its practicality as a currency. Schiff’s comments come amid ongoing discussions about the pros and cons of traditional investments like gold versus emerging digital assets like Bitcoin.
The ChatGPT AI tool has recently sparked a debate over the value of gold vs. Bitcoin as an investment. According to financial commentator Peter Schiff, the AI tool reportedly favored gold over Bitcoin when it recommended a “recession-proof” portfolio. Schiff praised the AI tool’s intelligence for not recommending any allocation to Bitcoin. The recommended portfolio comprised of 20% gold and other precious metals, 40% bonds, 30% “defensive” stocks, and 10% cash. The AI bot’s answer might not be a knock against crypto nor a promotion of gold. When directly asked about “Gold or Bitcoin,” ChatGPT said that the choice of which to buy ultimately depends on your investment goals.
The AI bot compared gold with Bitcoin, stating that gold is a tangible asset and is considered a safe-haven investment during times of economic uncertainty. It is a limited resource and is expensive to mine, which gives it scarcity and intrinsic value. In contrast, Bitcoin is not backed by any physical asset or government, and it is considered by many to be a speculative investment. Gold may be a better choice for those seeking a stable, long-term investment, while Bitcoin may be more suitable for those looking for a high-risk, high-reward investment opportunity.
It is worth noting that the AI tool’s corpus of knowledge is current only through 2021 and might not include the significant movements – both up and down – that the price of Bitcoin has seen since. Both gold and Bitcoin investors have been winning big this year, with each asset up respectively by 10% and 68% year to date. However, gold just crossed a multi-year resistance level at $2,000 per ounce, which Schiff believes could now serve as the “launch pad for a moonshot.”
Gold and Bitcoin are often compared as forms of money due to their strong monetary properties, particularly scarcity, which theoretically makes them resistant to inflation or monetary debasement like fiat currencies. Both assets surged in March after the Federal Reserve bailed out depositors to Silicon Valley Bank, injecting hundreds of billions of dollars back into the banking system to prevent similar bank failures.
While Schiff takes the opportunity to double down on gold, an army of Twitter Bitcoiners continues to disapprove, including his own son. According to Spencer Schiff, “long-term bitcoin is a much better buy than gold,” and it is likely to demonetize gold in the long term. In the short term, he has no idea as he focuses on the long term.
In conclusion, ChatGPT’s AI tool may have taken sides when it comes to the worth of gold vs. Bitcoin as an investment. However, the choice of which asset to purchase ultimately depends on your investment goals, and both assets have shown promising returns in 2021.