For most investors, gold and bitcoin are not in the same class. Gold is a traditional investment, and thus considered more stable and safer as compared to Bitcoin. Bitcoin, on the other hand, is undergoing a roller-coaster and thus is not very risk-averse.
The CEO of Euro Pacific Capital, which is a dealer of foreign markets, securities, and precious metals, expressed his disappointment for CNBC focusing on Bitcoin more than gold. The CEO, Peter Schiff, is very bullish on gold, but very skeptic on bitcoin.
This year has been a very interesting one in the Bitcoin space. So far, there are have been many tweets from CNBC showing that they are in favor of bitcoin.
CBNC favoring bitcoin
On February 19th, Peter Schiff expressed his disapproval of CNBC focusing on bitcoin more than gold, citing that CNBC is ignoring the rise in the price of gold and is instead focusing on pumping bitcoin. According to him, @CNBCFastMoney has more bias to Bitcoin from its tweets.
Schiff also complained of CNBC ignoring the different gold predictions made such as that from Citibank that suggests gold can reach up to $2000, getting a gain of 25%, in the next 12-24 months. Citibank’s prediction was dismissed by CNBC saying that returns are too low, as that will mean a gain of 25% for two years.
Price of Gold
Turns out that Citibank’s prediction was accurate as at February 21st, the price of gold was already higher than $1640, which was the highest record in seven years.
CNBC is, however, justified to support Bitcoin as the price of Bitcoin is set to grow higher than gold. The past few months have recorded major profits already than what gold would get.
For gold, the average return on investment in a year is 24% while that of Bitcoin there is an expected ROI of 138%. This can, however, be influenced by other factors. The truth remains that Bitcoin has more promising returns comparatively.
According to Schiff, Bitcoin is more like a pyramid scheme and can’t work as an investment portfolio, and will never work as a means of payment.
Investing in Bitcoin currently makes sense to most people especially with the anticipated halving set to happen in May. Crypto enthusiasts are hopeful that the halving will have a major impact on the price of Bitcoin since it will lead to low supply and high demand.
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