Étienne Girard
Renowned economist Peter Schiff has pushed back against claims that Bitcoin can effectively hedge against a weakening U.S. dollar, asserting instead that gold will emerge as the true winner in periods of dollar depreciation.
With the U.S. Dollar Index recently dipping below 96.5, Schiff sounded the alarm, cautioning that without decisive action from the Federal Reserve, consumer prices could surge in 2026.
According to Schiff, the current environment favors precious metals—particularly gold—due to their historical resilience during currency devaluation, while Bitcoin, in his view, lacks the characteristics necessary to perform in a similar way.
Schiff Doubts Bitcoin’s Role as a Safe-Haven Asset
Schiff emphasized that Bitcoin and gold often move in opposite directions, noting a negative correlation between the two. This divergence, he argues, makes Bitcoin an unreliable hedge when traditional financial systems are under pressure.
“Bitcoin behaves more like a risk asset than a store of value,” Schiff claims, adding that market downturns during dollar weakness may actually drag Bitcoin prices lower, rather than lift them.
This position stands in direct opposition to crypto advocates, who routinely describe Bitcoin as “digital gold”—a decentralized hedge against inflation and monetary instability.
Fed Policies and Political Tensions Stir Investment Debate
Schiff further criticized both major U.S. political parties for enabling policies that, in his view, weaken the dollar and fuel economic instability.
He particularly singled out Donald Trump’s support for lower interest rates, suggesting this approach only masks deeper fiscal issues. Instead, Schiff argues that reducing government spending would be a more sustainable strategy.
In a June 29 social media post, he wrote:
“Selling dollars to buy Bitcoin only increases the pressure on the currency. It’s not a solution—it’s a mistake.”
He also dismissed crypto investments as a waste of capital that ultimately harms national interests.
Gold vs. Bitcoin: Diverging Paths in a Weak Dollar Era
Schiff’s confidence in gold is grounded in decades of market history, where the metal consistently outperformed during periods of monetary uncertainty and dollar depreciation.
So far, he hasn’t named any alternative assets—beyond precious metals—that he believes could outperform in this economic environment.
The debate underscores a deeper divide: traditional economists often point to gold’s long-standing performance, while Bitcoin supporters emphasize the cryptocurrency’s fixed supply and decentralized nature.
With the Dollar Index continuing to trend downward, both camps will soon find out which asset stands the test of real-world market pressure.
