Financial commentator Peter Schiff claims that Bitcoin is actually "the best thing to have happened to the Fed" despite its anti-establishment nature.
Schiff argues that the leading cryptocurrency by market capitalization is actually taking the spotlight away from gold. The recent appreciation of the yellow metal would otherwise "expose" the policy mistakes of the central bank.
The gold bug is convinced that the monetary policy is too loose, predicting that inflation will eventually start heading higher.
Earlier, he forecasted that the Fed's short-term interest rate cuts would put upward pressure on long-term interest rates. The prophet of doom believes that this will tip the US economy into recession.
"Interest rate hikes kept a lid on oil prices for Americans because they strengthened the dollar relative to foreign currencies. But now that the Fed is cutting rates, a falling dollar will have the opposite effect. That means the prior decline in headline CPI will be reversed," Schiff said last week on his social media account.
Alex DovbnyaGold recently hit yet another record high of $2,630. The precious metal has been on a tear since the U.S. Federal Reserve opted for a bigger-than-expected 50-basis point rate cut.
Bitcoin has also gained some ground following the rate cut, recently reclaiming the $64,000 level. That said, the cryptocurrency remains well below its record high that was originally reached in March.
Meanwhile, commodity trader Peter Brandt recently predicted that Bitcoin could start massively outperforming gold based on the inverse head-and-shoulders (iH&S) pattern that he had spotted. The famous trader has warned warned Schiff that the gold bug would not be the one having the last laugh.
Vladislav Sopov
Dan Burgin