Economist Peter Schiff disputes the statement that Bitcoin is an effective hedge at the moments of weakening the US dollar.
Schiff is sure that it is gold, and not Bitcoin, that will benefit from the growing weakness of the dollar, which is convinced by historical correlations and market behavior. He added that Bitcoin retains a negative correlation with gold, which undermines its effectiveness as a traditional asset of the racing during periods of depreciation of the currency.
This point of view does not coincide with the position of supporters of cryptocurrency, who position Bitcoin as digital gold and a means of savings, independent of traditional financial systems.
Along with Bitcoin, Shiff criticized both American political parties for their approaches to fiscal and monetary policy, which exacerbate the weakness of the dollar. In his opinion, a decrease in interest rates, which Trump often speaks of, is less effective compared to a reduction in expenses.
The economist claims that buying bitcoins only increases pressure on the dollar, so he called investment in bitcoins an empty waste of money that harms the country.
Traditional economists, including Peter Schiff, turn to historical examples of gold dynamics in conditions of the weakness of the dollar, while cryptocurrency supporters refer to the cash characteristics of bitcoin. A decrease in the dollar index enlistes gold supporters and separately supporters of Bitcoin to observe real behavior in conditions of currency weakness.
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Source: Cryptocurrency
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