Is CNBC Right in ‘Pumping Bitcoin’ Instead of Gold at the Moment?

Siamak Masnavi

Recently, famous gold bug and Bitcoin skeptic Peter Schiff complained to CNBC for focusing more on Bitcoin than gold.

Schiff is the CEO of Euro Pacific Capital, a full-service, registered broker/dealer specializing in foreign markets and securities, and founder and Chairman of SchiffGold, a full-service, discount precious metals dealer. He is also a man who is extremely bullish on gold, bearish on the U.S. dollar, and highly skeptical about Bitcoin.

It is true that in the past few weeks Bitcoin has been sounding very bullish on Bitcoin and hyping Bitcoin's 2020 rally. Here are a couple of examples from Twitter:

Here is the tweet Schiff sent out on Wednesday (February 19):

Schiff is also angry that CNBC is not impressed by predictions (such as that from Citibank) that the gold price could reach $2000 in the next 12-24 months for a gain of 25% since this figure is too small to get today's investors excited:

Now, it is true that on Friday (February 21), the price of gold in U.S. dollars went above $1640, setting a new seven-year high. However, although CNBC might be making Schiff unhappy by focusing more on gold than Bitcoin during the past few weeks/months, what they are doing makes sense since Bitcoin, which many people also think of as a store-of-value, has been performing much better than gold. 

Gold's return-on-investment (ROI) figures (vs USD) for the past 30-day, year-to-date, six-month, and one-year, and five-year periods are approximately +4.98%, +8.09%, +7.38%, +23.81, and +36.80.

In contrast, Bitcoin's ROI figures for the same periods are +17.58%, +37.60%, -2.84%, +137.59%, and +4106.80%.

Earlier on Wednesday (February 19), the same day that Schiff complained about CNBC "pumping Bitcoin" instead of gold, he called Bitcoin "a pyramid scheme" since, in his view, Bitcoin -- unlike gold -- has never worked as a means of payment and will never do so:

This promoted Brendan Blumer, Co-Founder and CEO of Block.one (the company that developed the EOSIO protocol on which the EOS platform is based), agreed with Schiff that Bitcoin is not money in the sense it does not function well as a means of payment, but disagreed with Schiff's view that Bitcoin should be dismissed as investable asset (because Blumer thinks that over the next two decades Bitcoin will outperform gold as a store of value):

Blumer also took exception to Schiff calling Bitcoin a pyramid scheme:

Of course, it is also important to mention that Bitcoin's next/third block mining reward halving is expected to take place in May 2020, and many people in the crypto space seem to believe that the halving has not been priced-in and expect this event to have a major positive impact on the price of Bitcoin either in the up to the halving or in the months following the halving.

For example, Changpen Zhao (aka "CZ"), Co-Founder and CEO of Binance, said during an interview on February 19 with BLOCKTV Senior Anchor Yael Lavy that in his view the halving has not been priced in:

And earlier today, CZ had more to say about the next Bitcoin halving:

 

Featured Image by "WorldSpectrum" via Pixabay.com