If you invested 1000 in gold and Bitcoin after economist predicted crypto extinction heres how much you would have earned
Renowned American economist Peter Schiff has always been skeptical about the sustainability of Bitcoin (BTC) and the broader cryptocurrency industry. He stands in stark contrast to some financial experts who believe that Bitcoin has the potential to supplant gold as a valuable asset. However, Schiff, a firm supporter of gold, firmly believes in the precious metal’s unmatched superiority.
During periods of market turmoil, Schiff has seized the opportunity to caution investors against the dangers of cryptocurrencies. One notable incident occurred on November 14, 2022, amidst a severe crypto downturn. In a candid post, Schiff boldly proclaimed that crypto was on the brink of extinction.
“This is not just another crypto winter. This is crypto extinction. Gold will once again reign supreme as the leader of a new generation of asset-backed cryptocurrencies,” he declared.
It is interesting to note that following Schiff’s warning, both commodities experienced significant rallies, reaching new all-time highs. At the time of his post, Bitcoin was trading at $16,618.20, while gold was priced at $1,776.90 per ounce.
Investment in Gold and Bitcoin
Investors who heeded Schiff’s advice and stuck with gold may be curious about the performance of their investments. Meanwhile, those who dismissed his warnings and invested in Bitcoin are likely eager to see the results. Here’s how a $1,000 investment in each asset would have fared since Schiff’s post.
If an investor had allocated $1,000 to gold on November 14, 2022, they would have purchased approximately 0.5627 ounces of gold. With gold now trading at $2,336.65 per ounce as of June 14, 2024, the initial investment would be worth around $1,314.33, marking a 31.43% increase.
On the other hand, a $1,000 investment in Bitcoin on the same date would have yielded approximately 0.06016 BTC. With Bitcoin currently trading at $66,906, the investment would now be valued at about $4,023.57, reflecting an impressive 302.36% increase.
Bitcoin Surpasses Gold
Over the same period, a $1,000 investment in gold would have resulted in a profit of $314.33, while the same investment in Bitcoin would have generated a profit of $3,023.57, showcasing the significant outperformance of Bitcoin over gold.
Despite Schiff’s staunch anti-crypto stance, it is evident that an investment in Bitcoin has significantly outperformed gold during the same timeframe. While gold has a long-standing reputation as a stable asset over centuries, Bitcoin is still in its early stages. Only time will tell if Bitcoin can eventually catch up to gold as a store of value in the traditional financial sector.
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