Despite Growing Adoption of Bitcoin [BTC], Economist and Gold Advocate Peter Schiff Remains Unmoved in His Skepticism of the Digital Asset

Despite the growing wave of institutional and even state-level adoption of Bitcoin [BTC], economist and gold advocate Peter Schiff remains unmoved

Despite the growing wave of institutional and even state-level adoption of Bitcoin [BTC], economist and gold advocate Peter Schiff remains unmoved by any of it as he continues to maintain his skepticism of the digital asset.

Schiff keeps the faith in gold

Known for his preference for gold, Schiff took to X (formerly Twitter) to reiterate his belief in the precious metal as a superior safe-haven investment.

In a pointed observation, he noted the foreign central banks’ ongoing accumulation of gold as they prepare for a future with a diminished role for the U.S. dollar in the global monetary system.

This, he said, is a clear indication of where the true reserve asset is heading.

He stated,

“If gold is the past and Bitcoin is the future, why are foreign central banks that are preparing for a future where the U.S. dollar is no longer the reserve currency, replacing their dollar reserves with gold and not Bitcoin?”

In response to Pompliano’s assertion that central banks always lag in their market observations, one X user, Justin Bechler, offered an interesting perspective.

He stated,

“You know why. Because central banks are legacy institutions. They don’t front-run monetary shifts, they lag them. Gold is their comfort blanket. Bitcoin is the threat they can’t control, censor, or confiscate. When the game ends, they’ll be the last to admit it’s over.”

Indeed, recent global trends appear to be unfolding in a manner that lends some credence to Peter Schiff’s observations.

Are central banks pivoting to gold?

A growing number of central banks are boosting their gold reserves amid concerns over U.S. monetary policies and escalating geopolitical tensions.

Additionally, the U.S. dollar has been weakening due to President Donald Trump’s tariff policies, pushing countries to seek more stable reserve assets.

Furthermore, Russia’s invasion of Ukraine in 2022 has heightened global instability, leading to a swifter shift toward gold as a trusted safe-haven asset.

This is because following Russia’s invasion of Ukraine, central banks have been rapidly accumulating gold, acquiring over 1,000 metric tons annually, nearly double the average seen in the previous decade.

Discussing this shift, BofA commodity strategist Michael Widmer remarked,

“Emerging market central banks currently hold around 10% of their assets in gold. They should really hold 30% of their assets in gold.”

Gold and Bitcoin price action

This comes as gold rose 1.82% in the last 24 hours to $3,357.4 per ounce, despite slipping 1.12% over the past month.

In contrast, Bitcoin dropped by 2.34% in the last 24 hours at $108,300.54, according to CoinMarketCap.

However, despite slipping from above $109,000 earlier in the day, Bitcoin has shown resilience as it continues to be absorbed at these levels after its recent breakout.

Indeed, this phase has also seen a growing divergence from gold’s price trajectory, suggesting a potential decoupling of the two assets.

Thus, as Bitcoin charts its own course, diverging from traditional safe havens, the market may be entering a new era where digital and physical stores of value respond differently to global economic shifts.