Gold drops to annual lows against Bitcoin, but Peter Schiff remains unchanged. He believes that the cryptocurrency is the “biggest bubble” in history.
Bitcoin is getting more expensive
Bitcoin (BTC) hit seven ounces of gold this week. For the first time in over a year. It is worth adding that it reached almost USD 14,000 on the chart and outperformed almost all assets in percentage increases. Gold itself stopped its triumphal march north some time ago.
PlanB, the creator of the popular Bitcoin pricing model, claims that the cryptocurrency is kind of throwing a gold glove.
“BTC currently accounts for around 2.4 percent. market size of gold. This is just the beginning”
Similarly, Real Vision CEO Raoul Pal, who said the gold exchange rate “Breaks down” in relation to Bitcoin.
“The next thing I expect is the collapse of the correlation between BTC and the dollar and BTC against stocks … let’s see”
– he wrote last week.
Schiff: Bitcoin is “the biggest bubble I’ve ever seen”
Reacting to the recent BTC price action, Peter Schiff did not restrain himself from attacking the cryptocurrency. In his Twitter post, he described it as the fruit of a “bubble”.
“(…) the Bitcoin bubble is the biggest I have ever seen”
– he said.
“Bitcoin keepers are more convinced that they are right and cannot lose than [inwestorzy] buyer [akcje] dotcoms or real estate during these bubbles “
If you measure the size of asset bubbles based on the level of conviction buyers have in their trade, the #Bitcoin bubble is the biggest I’ve seen. Bitcoin hodlers are more confident they’re right and sure they can’t lose than were dotcom or house buyers during those bubbles.
– Peter Schiff (@PeterSchiff) October 28, 2020
It is worth adding, however, that these hodlers have reasons to be happy. Bitcoin has not yet suffered from the next wave of uncertainty that has already hit the global economy as a result of the recurrence of the COVID-19 pandemic. This led to the thesis that the correlation of BTC with traditional assets has almost disappeared.
As reported by Cointelegraph, the correlation between BTC / USD and the S&P 500 hit zero again this week as Bitcoin alone hit nearly $ 14,000.
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