Renowned financial commentator Peter Schiff brings up a curiosity about Bitcoin (BTC) since this digital coin’s rising price fails to match its lower market valuation when compared to gold.
During 2021 BTC set its highest record at $69,000 while representing only 10.72% of the total gold market valuation. BTC maintained its price increase in 2021 but its market size compared to gold sank down to 9.95%.
Bitcoin Struggles to Replace Gold’s Status
According to Schiff Bitcoin has not met gold’s status as “the new gold” because its market value keeps shrinking. The share of gold value Bitcoin holds continues to decrease instead of growing which makes clear that it is not on track to replace gold.
From its beginning in 2021 until December 2024 BTC increased in value by 10%. BTC overperformed gold with its price gains following the market trough in January 2023 until now. During its most profitable phase BTC increased 350% more than gold but still holds 260% more value than gold by year-end.
Bitcoin Fails to Outshine Gold’s Stability
The markets show that BTC performs better than gold when both currencies rally. Despite these moments BTC has not achieved clear superiority over other assets. Bitcoin and gold maintain their historic peaks but gold reaches higher records than BTC making people question its future ability to exceed precious metal returns.
Other analysts besides Schiff believe in these findings. Market expert Peter Brandt observes this market trend in his work. The market excitement about BTC combined with major investor interest has not made BTC convincingly stand out as a better choice than gold when it comes to holding wealth securely. Bitcoin faces a major challenge to prove its value as digital gold according to Brandt.
People who support Bitcoin think the digital currency is developing as it integrates into the wider financial network. They expect it to take over because their research shows growing use of BTC technology and upgrading. Schiff’s essential inquiry is based on whether BTC should already control more value than gold if it truly plans to do so.
