In the latest Bitcoin news, economist Peter Schiff has once again criticized Bitcoin, calling it a speculative asset despite its recent 27% surge. Schiff, a well-known gold advocate, pointed to the Gold Miners Index’s 61% gain as proof of gold’s superiority. But is he right, or is Bitcoin truly the future of finance?
Peter Schiff’s Bitcoin Criticism: A Speculative Bubble?
Peter Schiff, founder of Euro Pacific Capital, has long been a vocal critic of Bitcoin. Despite its recent price surge past $120,000, Schiff argues that Bitcoin lacks intrinsic value. He compares it to a “decentralized Ponzi scheme,” driven by speculation rather than economic fundamentals. Key points of his argument include:
- Bitcoin’s divisibility into satoshis doesn’t create real scarcity.
- Its energy-intensive proof-of-work mechanism is unsustainable.
- Volatility makes it unreliable as a store of value.
Gold Miners Index Outperforms Bitcoin in 2025
Schiff highlights the Gold Miners Index (GDX), which has surged 61% in 2025, compared to Bitcoin’s 27% gain. He uses this to challenge the idea of Bitcoin as “digital gold.” Here’s a quick comparison:
| Asset | 2025 Gain | Schiff’s View |
|---|---|---|
| Bitcoin | 27% | Speculative bubble |
| Gold Miners Index | 61% | Proven store of value |
Will Bitcoin Survive the Next Financial Crisis?
Schiff predicts that the 2025 financial crisis will expose Bitcoin’s fragility. He believes gold will thrive if the U.S. dollar weakens, while Bitcoin’s lack of intrinsic value will become evident. Critics, however, argue that Bitcoin’s decentralized nature and institutional adoption counter his claims.
FAQs
Q: Why does Peter Schiff criticize Bitcoin?
A: Schiff views Bitcoin as a speculative asset with no intrinsic value, unlike gold, which has physical utility and historical acceptance.
Q: How does the Gold Miners Index compare to Bitcoin?
A: In 2025, the GDX rose 61%, outperforming Bitcoin’s 27% gain, according to Schiff.
Q: Does Schiff own Bitcoin?
A: He acknowledges a “Strategic Bitcoin Reserve” in his portfolio, but claims it’s managed by donors and will never be sold.
Q: What does Schiff predict for Bitcoin in a crisis?
A: He believes Bitcoin will collapse during systemic shocks, while gold will remain stable.
