Bitcoin’s value compared to gold has slipped back toward levels last seen nearly a decade ago, reigniting an old debate over whether the cryptocurrency really works as a long-term store of value.
According to economist and longtime crypto skeptic Peter Schiff, one Bitcoin is now worth about 15.5 ounces of gold — down roughly 57% from its 2021 peak and only about 10% above its 2017 level when measured against the precious metal.
In a post on X, Schiff argued that despite years of hype, growing mainstream acceptance, and Wall Street adoption, Bitcoin has failed to outperform traditional safe havens when it matters most.
Schiff: Gold and Silver Are Winning the Safety Trade
Schiff said investors who piled into Bitcoin would have been better off holding gold or silver, both of which have seen strong inflows as geopolitical risks rise and uncertainty lingers around interest rate policy.
“Most people who now own Bitcoin would have been better off buying gold or silver instead,” Schiff wrote.
His comments come at a time when precious metals continue to attract capital as investors look for stability, while Bitcoin has struggled to regain momentum following recent pullbacks.
A Broader Shift in Investor Behavior
Not everyone sees the gold-versus-Bitcoin story as a zero-sum game. Matt Hougan, chief investment officer at Bitwise, has pointed out that gold’s recent surge — reportedly pushing past $5,000 an ounce — reflects more than just short-term fear.
Hougan noted that roughly half of gold’s dollar value has been created in just the past 20 months, despite its thousands-of-years-long history as a store of value. In his view, that move highlights deeper structural forces, including years of loose monetary policy, rising government debt, and concerns over currency debasement.
“It shows that people no longer want to keep all of their wealth in a format that relies on the good graces of others,” Hougan wrote.
At the same time, he flagged growing uncertainty around the Clarity Act, a proposed piece of US legislation meant to provide a clearer regulatory framework for crypto — something investors had been hoping would arrive sooner.
Bitcoin Caught Between Macro Pressure and Risk-Off Flows
Bitcoin has recently slipped back below $89,000 after a brief bounce, weighed down by tighter financial conditions and rising geopolitical tensions that have taken the shine off risk assets.
According to XS.com analyst Samer Hasn, a Federal Reserve that remains neutral-to-hawkish, combined with ongoing tensions in the Middle East, has reduced appetite for speculative investments across crypto markets.
The data reflects that caution. CoinGlass figures show crypto futures open interest has fallen 42% from record highs, with attempted breakouts quickly turning into sharp reversals — a sign that traders are pulling back.
Meanwhile, capital has been flowing into traditional safe havens like gold and silver, leaving digital assets struggling to attract fresh inflows as volatility persists.
With Fed Chair Jerome Powell signaling little urgency to cut rates and geopolitical risks keeping investors defensive, analysts say Bitcoin remains a higher-risk trade — at least until policy conditions ease or global tensions cool.
