If you had invested 1000 in gold and Bitcoin after economist predicted crypto extinction heres how much you would have now

Renowned American economist Peter Schiff has always been vocal about his skepticism towards the sustainability of Bitcoin (
BTC
) and the overall cryptocurrency market.
Schiff’s critiques stand in contrast to some financial experts who believe that Bitcoin has the potential to surpass gold as a reliable store of value. However, as a devoted gold enthusiast, Schiff firmly believes that the precious metal reigns supreme.
seizing opportunities during market downturns, Schiff has consistently urged investors to steer clear of cryptocurrencies. A significant moment was on November 14, 2022, amidst a crypto winter. In a post on
X
, Schiff boldly proclaimed the imminent extinction of crypto.
“This is not just a #crypto winter. That implies a spring is on the horizon. This is not even a crypto ice age, as even those eventually ended after millions of years. This is crypto extinction. <…> Gold will once again emerge as the leader of a new wave of asset-backed cryptos,” he asserted.
Following Schiff’s statement, both assets have experienced rallies, reaching new all-time highs. At the time of his post, Bitcoin was trading at $16,618.20, and gold was valued at $1,776.90 per ounce.
Investing in Gold and Bitcoin
Investors who heeded Schiff’s advice to stick with gold may be curious about their investment’s performance. Conversely, those who ignored his warnings and invested in Bitcoin might be eager to see the outcome. Let’s examine how a $1,000 investment in each asset would have fared since the post.
If an investor had allocated $1,000 to gold on November 14, 2022, they would have acquired approximately 0.5627 ounces of gold ($1,000 / $1,776.90 per ounce). As of June 14, 2024, gold is trading at $2,336.65 per ounce. Consequently, the 0.5627 ounces of gold would now be valued at approximately $1,314.33, representing a 31.43% increase.
On the same date, a $1,000 investment in Bitcoin would have yielded approximately 0.06016 BTC ($1,000 / $16,618.20 per BTC). Currently, Bitcoin is trading at $66,906. The initial investment would now be worth around $4,023.57, reflecting a 302.36% increase.
Bitcoin Outperforms Gold
Over the same period, a $1,000 investment in gold would have grown to approximately $1,314.33, resulting in a profit of $314.33. In contrast, the same investment in Bitcoin would now be worth about $4,023.57, yielding a profit of $3,023.57.
Despite Schiff’s staunch opposition to cryptocurrencies, an investment in Bitcoin has significantly outperformed gold during this period.
It is essential to acknowledge that gold has established itself as a stable asset over centuries, while Bitcoin is still in its early stages. The question remains whether Bitcoin can eventually match gold’s status as a reliable store of value in the traditional financial sector.
Disclaimer:
The information provided on this platform should not be interpreted as financial advice. All investments carry inherent risks, and individuals should exercise caution when investing capital.