Purchasing Power Plunges 66%... Peter Schiff Says Bitcoin Has Lost Its Ability to Preserve Wealth

▲ Gold, Copper, and Bitcoin (BTC) / AI-Generated Image

Bitcoin (BTC) is delivering deep disappointment to investors, suffering a crushing defeat in its value competition against physical gold, making the label “digital gold” seem increasingly hollow.

According to cryptocurrency outlet The Crypto Basic on February 24 (local time), prominent Bitcoin skeptic Peter Schiff, chairman of Euro Pacific Capital, recently argued that Bitcoin has plunged 66% against gold, completely losing credibility as a store of value. Schiff stated that while Bitcoin may appear resilient when priced in U.S. dollars, it has been on an endless downward trajectory since its 2021 peak when measured against gold, a true gauge of purchasing power.

In November 2021, Bitcoin reached around $69,000, enough to purchase 38 ounces of gold. Today, that value has shrunk to roughly 13 ounces. While gold has surged past $5,000 per ounce to set new all-time highs, Bitcoin has retreated, undermining its narrative as an inflation hedge. On the ground, the prevailing assessment is that Bitcoin behaves more like a high-risk tech stock than a safe-haven asset, leaving it exposed to market volatility.

Schiff also continued his sharp criticism of Strategy Chairman Michael Saylor’s aggressive buying strategy. Although Saylor has staked everything on Bitcoin while promoting a rosy outlook, critics argue that he has incurred significantly greater relative losses compared to holding physical gold. Claims are gaining traction that Saylor’s Bitcoin maximalism traps investors in illusion while depriving them of genuine opportunities to preserve wealth.

Each time geopolitical crises and global economic uncertainty intensify, Bitcoin’s failure to function as a safe-haven asset exposes the fundamental limitations of digital assets. Analysts argue that without tangible industrial use or intrinsic value, Bitcoin still has a long way to go before rivaling gold’s status as a physical asset. Among investors, voices of reflection are growing louder, urging a shift away from the illusion of price appreciation toward assets capable of defending real purchasing power.

Bitcoin is currently threatening key support levels and exhibiting highly unstable technical trends, with its decline in value against gold potentially signaling a prolonged downturn. Despite favorable factors such as Wall Street support and increasing institutional adoption, its failure to preserve purchasing power in the real economy is shaking the very foundation of its existence. To be recognized as true digital gold, Bitcoin now faces the formidable task of proving its strength in direct value competition with tangible assets, beyond mere price volatility.

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