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Bitcoin vs. Gold: Peter Schiff Questions BTC's Store of Value Narrative

Peter Schiff highlights Bitcoin's underperformance compared to gold, raising doubts about its role as a store of value. Despite recent gains, Bitcoin's market cap share relative to gold has shrunk, sparking debate about its long-term potential.
Published on 2025-02-10

Bitcoin's Market Cap Share of Gold Declines

Peter Schiff has raised skepticism about Bitcoin's (BTC) role as a store of value, pointing out that its market cap relative to gold has declined. In 2021, when Bitcoin hit $69,000, its market cap represented 10.72% of gold's. Today, at $98,000, this figure has dropped to 9.95%. Schiff questions why Bitcoin's share of gold's value is shrinking if it is supposed to be the "new gold."

Bitcoin Outperforms Gold in Recent Years

Despite the shrinking market cap share, Bitcoin has outperformed gold significantly since January 2023. At its peak, Bitcoin's price surged over 350% compared to gold, and it currently maintains a 260% advantage. However, when comparing their respective peaks, Bitcoin has yet to surpass gold's dominance.

The Great Debate Over Bitcoin's Future

Analysts like Peter Brandt have also noted Bitcoin's failure to convincingly decouple from gold, despite hype and institutional adoption. This raises questions about its long-term narrative as a store of value. While Bitcoin bulls argue that the cryptocurrency is still maturing and will eventually dominate, Schiff's question lingers: If Bitcoin is destined to overtake gold, why hasn't it happened yet?

Conclusion

The comparison between Bitcoin and gold continues to spark debate. While Bitcoin has shown impressive growth, its inability to surpass gold's value raises doubts about its ultimate role in the financial landscape. Only time will tell if Bitcoin can fulfill its promise as the new gold.

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