Peter Schiff, founder and chief strategist of Euro Pacific Capital, raised a new criticism of the digital gold argument for Bitcoin by comparing Bitcoin and gold price fluctuations.
Schiff pointed out that while gold prices rose 3% from Friday's closing price over the weekend, Bitcoin (BTC) prices fell 3% during the same period. He used this as evidence to question the claim that Bitcoin is digital gold.
However, there are suggestions that such short-term price comparisons do not properly evaluate Bitcoin's essence. The Bitcoin community merely compares BTC to a digital asset with gold-like properties, and does not equate it with physical gold or gold ETFs.
In the Bitcoin white paper published on October 31, 2008, Satoshi Nakamoto explained that "the steady addition of new coins is similar to gold miners investing resources to circulate gold. In our case, CPU time and electricity are invested".
Schiff also claimed that "gold has 100% intrinsic value, while Bitcoin is based 100% on trust". However, gold itself is recognized as a financial product due to characteristics such as scarcity, durability, replaceability, and chemical identifiability, rather than its intrinsic value.
Bitcoin was designed to implement these gold characteristics in a free and open public computer network database. As an inflation hedge, Bitcoin has shown performance surpassing gold so far.
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