Peter Schiff, a prominent gold advocate and vocal critic of Bitcoin, has recently scrutinized the cryptocurrency’s performance in light of its notable price drop since November 2021. Despite some positive developments in the market, Schiff highlights how Bitcoin has significantly depreciated in value compared to gold, leading to concerns regarding its viability as a secure investment option.
Bitcoin Suffers Significant Losses Against Gold
According to Schiff, Bitcoin has lost nearly 30% of its value against gold since its all-time high in 2021. He claims that, despite various factors like ETF approvals and institutional purchases intended to stabilize the market, the cryptocurrency continues on a downward trajectory, casting doubt on its long-term prospects.
Emphasizing gold’s historical status as a safe haven, Schiff argues that Bitcoin’s volatility undermines its attempts to fulfill a similar role. He asserts that an asset which loses value during times of reduced risk appetite deviates from being labeled as “digital gold,” effectively comparing it to non-dividend stocks instead of a reliable store of value.
Institutional Backing Falls Short of Expectations
Recent purchases by the firm led by Michael Saylor, Strategy, underscore Schiff’s concerns. Various transactions in 2025 resulted in significant financial losses, including steep declines on notable purchase dates, raising questions about the effectiveness of institutional investment in stabilizing Bitcoin’s price.
These issues highlight the struggles faced by institutional investors in dealing with Bitcoin’s volatility, prompting Schiff to suggest that market participants should exercise increased caution regarding their investment choices.
Bitcoin’s Stability Remains Uncertain
Despite developments like ETF approvals and enhanced institutional engagement, Bitcoin’s volatility prevents it from being viewed as a stable investment. Schiff notes that the ongoing price fluctuations hinder its potential as a reliable long-term asset for value preservation.
Although proponents tout Bitcoin’s limited supply and decentralization as key advantages, these features contribute to investor anxiety due to unpredictable price swings. Sudden significant losses further complicate the investment landscape. Schiff urges individuals to reevaluate their portfolios and reassess Bitcoin’s role in light of these complexities.
