If you had invested 1000 in gold and Bitcoin after economist predicted crypto extinction heres how much you would have now
American economist Peter Schiff is well-known for his skepticism towards the sustainability of Bitcoin (BTC) and the broader cryptocurrency market. Despite the belief of some financial industry professionals that Bitcoin could potentially replace gold as a store of value, Schiff, a devoted gold advocate, firmly asserts that the precious metal reigns supreme.
Schiff has often taken advantage of market downturns to caution investors to divest from cryptocurrencies. A notable instance occurred on November 14, 2022, amidst a prevailing crypto winter, when Schiff boldly proclaimed in a post that the crypto industry was on the brink of extinction.
Following Schiff’s warning, both commodities experienced significant rallies, reaching new all-time highs. At the time of Schiff’s post, Bitcoin was trading at $16,618.20, while gold was valued at $1,776.90 per ounce.
Investors who followed Schiff’s advice and stuck with gold may be curious to see how their investments have performed. On the other hand, those who ignored his advice and invested in Bitcoin may be eager to assess the outcomes. Let’s examine the performance of a $1,000 investment in each asset since the post.
If an investor had allocated $1,000 to gold on November 14, 2022, they would have purchased approximately 0.5627 ounces of gold. Fast forward to June 14, 2024, and gold is trading at $2,336.65 per ounce, making the initial investment now worth around $1,314.33, reflecting a gain of 31.43%.
In contrast, a $1,000 investment in Bitcoin on the same date would have acquired approximately 0.06016 BTC. With Bitcoin trading at $66,906 by press time, the investment would now be valued at approximately $4,023.57, representing an impressive increase of 302.36%.
Comparing the two investments over the same period, the $1,000 investment in gold would yield a profit of $314.33, while the same amount invested in Bitcoin would result in a profit of $3,023.57, showcasing the significant outperformance of Bitcoin over gold.
Despite Schiff’s staunch opposition to cryptocurrencies, the data clearly demonstrates that an investment in Bitcoin has significantly surpassed gold in terms of returns over the specified period. While gold has established itself as a stable asset with centuries of history, Bitcoin, as a relatively new asset, still has room to grow in establishing itself as a store of value in the traditional financial sector.
Disclaimer: The information provided is not intended as investment advice and should be viewed as speculative. All investments carry risks, and capital is at risk when investing.
