Schiff: Central Banks Choose Gold, Not Bitcoin
Peter Schiff: Central Banks Favor Gold Over Bitcoin
Peter Schiff, a well-known Bitcoin critic, has reignited the gold vs. Bitcoin debate. His argument centers on the increasing trend of central banks globally accumulating gold reserves instead of Bitcoin.
Central Bank Gold Accumulation: A Key Indicator?
Schiff's recent post on X highlights the growing adoption of gold by foreign central banks preparing for a potential shift away from the US dollar as the world reserve currency. He poses the question: "If gold is the past and Bitcoin the future, why are central banks choosing gold and not Bitcoin?"
He contends that this trend underscores gold's enduring value within the global financial system. He further criticizes American Bitcoin holders, suggesting their significant holdings (nearly half of global Bitcoin, 40% of the supply) may expose them to substantial losses as others sell.
The Gold Rush Continues
Several factors drive the increased gold demand among central banks. These include: President Trump's tariffs, the devaluation of the dollar, and geopolitical instability (like Russia's invasion of Ukraine). A Reuters report suggests this year's central bank gold demand might be the highest in decades. Central banks purchased over 1,000 metric tons annually since 2022 —double the average of the previous decade. BofA commodity strategist Michael Widmer even suggests emerging markets should hold 30% of their assets in gold, compared to the current 10%.
Russia's central bank, a significant gold holder, has actively accumulated gold since 2014, mitigating the risk of Western sanctions. This proactive strategy reflects a broader trend among foreign governments. Schiff argues that if Bitcoin were truly superior, central banks would be adopting it.
Bitcoin's Price Performance
At the time of writing, gold is valued at $3,357.4 per ounce, while Bitcoin is at $108,148. Gold saw a 1.82% daily increase but a 1.12% monthly decrease, while Bitcoin experienced a 2.31% daily decrease and a 17% monthly increase.
Note: The information presented above is for informational purposes only and should not be considered financial advice. Conduct thorough research before investing.
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