Gold vs Bitcoin Clash: Schiff & McGlone’s Big Warning for Investors

Gold vs Bitcoin: Schiff and McGlone Highlight Mounting Risks for Investors

The long-running debate between gold and Bitcoin has once again taken center stage, reigniting discussions over which asset provides greater long-term security for investors. On one side, long-time gold advocate Peter Schiff has renewed his criticism of Bitcoin, arguing that the cryptocurrency’s performance continues to fall short when compared with the resilience of gold. On the other, Bloomberg Intelligence senior strategist Mike McGlone has issued a broader warning about potential risks facing digital assets in the event of a market downturn.

Source: X

Schiff: Gold Still the “Ultimate Safe Haven”

In his latest commentary, Schiff pointed out Bitcoin’s weakness relative to gold, despite the cryptocurrency setting new nominal highs. He noted that since August 12, when Bitcoin priced in gold peaked at 37.2 ounces, the ratio has dropped by 18%, placing it just 2% above official bear market territory. Compared with its November 2021 ratio, Bitcoin remains almost 16% lower.

“Even as Bitcoin has reached new highs in dollar terms, its weakness compared to gold is undeniable,” Schiff said. “This only reinforces the fact that gold, not Bitcoin, remains the superior safe-haven asset.”

Source: CMC

Schiff highlighted that while Bitcoin surged past $110,000 recently, its performance relative to gold has been far less impressive. Meanwhile, the precious metal has seen consistent growth across multiple time horizons. According to TradingView data, gold has risen 36% year-to-date, 42% over the past twelve months, and 23% in the last six months. Over a five-year period, the metal has gained more than 85%, solidifying its role as a reliable store of value.

Bitcoin’s Ongoing Volatility

Bitcoin, often referred to as “digital gold,” remains the most recognized and widely adopted cryptocurrency. Currently trading around $110,200, Bitcoin has demonstrated significant growth over the years but also faces ongoing volatility.

In the short term, Bitcoin has shown signs of weakness. The asset has slipped 0.46% over the past 24 hours and more than 4% over the past month. Yet its longer-term performance remains compelling. Data shows that Bitcoin is still up 18% in 2025, 36% over the past six months, and an astonishing 96% over the past year. For many investors, such dramatic gains continue to make Bitcoin an attractive high-risk, high-reward opportunity.

This stark contrast—between gold’s steady, measured gains and Bitcoin’s dramatic surges and corrections—forms the heart of the ongoing debate. For conservative investors, gold’s stability remains unmatched. For risk-tolerant investors seeking outsized returns, Bitcoin offers potential but with significant uncertainty.

McGlone’s Warning: Crypto Faces Broader Market Risks

Adding fuel to the debate, Bloomberg’s Mike McGlone emphasized that Bitcoin’s limited supply—capped at 21 million coins—does not insulate it from broader market risks. While scarcity is often seen as one of Bitcoin’s greatest strengths, McGlone noted that the explosive growth of the cryptocurrency sector poses challenges.

“In 2009, there was only one cryptocurrency,” McGlone observed. “Today, there are over 21 million tokens listed across the global market. Scarcity may apply to Bitcoin, but the broader digital asset space has become oversaturated.”

Source: X

McGlone cautioned that in the event of a major U.S. stock market correction, Bitcoin and other cryptocurrencies could experience sharp losses. “Digital assets could lose a zero faster than they added one since 2020,” he warned, referencing Bitcoin’s rapid ascent during the pandemic followed by equally sharp declines in subsequent corrections.

The Broader Investor Landscape

The diverging perspectives of Schiff and McGlone underscore the difficulty faced by investors navigating today’s complex markets. Traditionalists see gold as the proven store of value, citing its centuries-long track record, universal acceptance, and immunity to technological disruption. Meanwhile, Bitcoin enthusiasts argue that the cryptocurrency represents the future of finance, offering decentralized, censorship-resistant money with massive upside potential.

Notably, some investors choose to diversify rather than pick a side. Financial educator and author Robert Kiyosaki, for instance, has repeatedly endorsed Bitcoin as part of his investment portfolio while continuing to emphasize trust in gold and silver. This dual strategy reflects a growing recognition that both assets can play complementary roles in hedging against inflation, currency devaluation, and systemic risk.

Gold’s Long-Term Stability

Gold’s reputation as a safe haven asset is supported not only by its historical performance but also by its behavior in modern financial cycles. Unlike equities or cryptocurrencies, gold has no counterparty risk, making it particularly appealing in times of economic stress.

For institutional investors and central banks, gold continues to serve as a key reserve asset. Recent years have seen record levels of central bank gold purchases, further reinforcing its position as a cornerstone of financial stability. As geopolitical tensions and inflationary pressures persist, gold’s steady upward trajectory provides reassurance to investors wary of volatility in other markets.

Bitcoin’s Case for Growth

Despite criticisms, Bitcoin’s long-term growth story remains compelling. Since its inception in 2009, Bitcoin has transformed from a niche experiment into a trillion-dollar asset class that commands the attention of governments, institutions, and individual investors alike.

Bitcoin’s supporters argue that its capped supply and growing adoption make it the ultimate hedge against fiat currency debasement. The increasing integration of Bitcoin into mainstream finance—from ETFs to adoption by corporations and even sovereign states—adds further legitimacy to its role as a digital asset of the future.

While short-term volatility is undeniable, proponents argue that Bitcoin’s long-term trajectory mirrors the early stages of other transformative technologies. Much like the internet in the 1990s, Bitcoin’s path may be characterized by volatility, but its disruptive potential remains immense.

The Investor’s Dilemma

For investors, the choice between gold and Bitcoin often comes down to risk tolerance and investment horizon. Those prioritizing capital preservation and stability continue to favor gold. Those willing to embrace volatility in pursuit of outsized returns lean toward Bitcoin.

Yet, many experts caution that the decision should not be binary. A balanced approach, incorporating both gold and Bitcoin, may provide the best of both worlds—stability through gold and growth potential through Bitcoin.

Conclusion

The gold-versus-Bitcoin debate is unlikely to reach a definitive conclusion anytime soon. As Schiff continues to argue for gold’s unmatched stability and McGlone warns of systemic risks facing digital assets, Bitcoin’s supporters point to its explosive growth and transformational potential.

For investors, the debate underscores the importance of diversification, risk management, and long-term strategy. Whether choosing gold, Bitcoin, or a combination of both, the key lies in aligning investment choices with individual financial goals and risk tolerance.

In a world of shifting economic landscapes and evolving financial technologies, the battle between gold and Bitcoin will continue to shape discussions for years to come.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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