- Peter Schiff claims buying Bitcoin in 2024 is too late, given gold’s market cap gain outpacing Bitcoin.
- Schiff criticizes Bitcoin’s viability as digital currency, pointing out high transaction costs and slow processing times.
Bitcoin’s market value has reached $1.15 trillion according to CoinGecko. However, financial commentator Peter Schiff believes it is now too late to invest in Bitcoin.
He notes that the market cap increase for gold this year is five times greater than Bitcoin’s entire market cap, raising questions about Bitcoin’s growth potential compared to gold.
With #gold trading at $2,557, its total market capitalization is $17.2 trillion, up $5.7 trillion so far in 2024. With #Bitcoin trading at $58,400, its total market capitalization is $1.1 trillion. That means gold's 2024 market cap gain is already 5x Bitcoin's total market cap!
— Peter Schiff (@PeterSchiff) September 12, 2024
In contrast, several financial analysts forecast a bright future for Bitcoin. Hedge fund manager Mark Yukso and Tom Lee from Fundstrat suggest that Bitcoin could climb to $150,000 by the end of this year. Mike Novogratz of Galaxy Digital also predicts that Bitcoin might exceed the $100,000 threshold within the same period.
Furthermore, Cathie Wood from Ark Invest has set a long-term price target for Bitcoin at $3.8 million, contingent on institutional investors dedicating at least 5% of their assets to Bitcoin.
On the other hand, Michael Saylor of MicroStrategy has a more ambitious view, suggesting Bitcoin could reach $13 million by 2024. He argues that Bitcoin will capture 7% of global capital, though this is considered his moderate scenario; his most bullish case sees a potential rise to $49 million.
However, Peter Schiff remains critical of Bitcoin’s functionality as a digital currency. He points to the steep cost of a single transaction, which recently escalated to $128, as well as the transaction processing time, which now exceeds an hour. Schiff argues that these factors render Bitcoin impractical for everyday transactions.
Interestingly, Schiff proposes that gold could become a viable digital currency through tokenization. He believes that if gold were tokenized on a blockchain, it could offer nearly instantaneous transactions at minimal costs, suggesting that in a digital format, gold could outperform Bitcoin.
Despite the varied perspectives on Bitcoin’s future, the cryptocurrency continues to be a topic of intense debate among investors and analysts.
As opinions diverge, the market watches closely, considering both the bullish forecasts and the critiques that suggest limitations in Bitcoin’s utility as an everyday currency.
Bitcoin vs. Gold: Performance Analysis Over the Last 5 Years
In the last 5 years, Bitcoin and gold have demonstrated distinct performance trajectories, each influenced by different market factors.
Bitcoin Performance (2018–2023)
Bitcoin has exhibited high volatility and significant price appreciation. From 2018 to its peak in late 2021, Bitcoin surged by over 900%, reaching a high of $69,000. However, it also experienced steep corrections, including a 50% drop in 2022. Despite volatility, Bitcoin’s compounded annual growth rate (CAGR) during this period has been approximately 60%.
Gold Performance (2018–2023)
Gold, on the other hand, has been a relatively stable asset. It saw steady growth in response to economic uncertainties, particularly during the COVID-19 pandemic, reaching an all-time high of $2,070 in 2020. Over the last five years, gold’s CAGR has been around 8%.
