Peter Schiff, a well-known gold advocate and Bitcoin critic, recently made a significant comment about Bitcoin, stating that it is currently in a “major bear market.” Schiff pointed to Bitcoin’s performance against gold since its peak in November 2021, highlighting that the cryptocurrency has lost 30% of its value when priced in gold. Despite several positive developments such as ETF approvals and institutional adoption, Bitcoin has failed to perform well against gold, according to Schiff.
Schiff’s criticism of Bitcoin’s performance comes as MicroStrategy’s recent Bitcoin acquisitions have fallen into the red. The company, led by Bitcoin advocate Michael Saylor, has made aggressive Bitcoin purchases throughout 2025, but recent acquisitions are showing negative returns. For example, their largest purchase of 22,048 BTC at an average price of $86,969 on March 31, 2025, has lost over $97 million in value, representing a 5.08% decline. This underperformance raises questions about the popular narrative of Bitcoin as a digital store of value similar to gold.
Schiff challenges the comparison of Bitcoin to gold, arguing that Bitcoin’s volatility and underperformance contradict the narrative of it being a stable store of value. He questions the rationale behind including such a volatile asset in strategic reserves, especially as recent purchases by MicroStrategy are showing significant losses. Despite the positive developments in the Bitcoin ecosystem, such as ETF approvals and institutional adoption, Bitcoin’s performance against gold remains a point of concern for Schiff.
In addition to criticizing Bitcoin’s price performance, Schiff has raised questions about the fundamental role of Bitcoin as an investment asset. He posed rhetorical questions about Bitcoin’s utility and classification, questioning what investors are buying when they invest in Bitcoin. Schiff ruled out several potential classifications for Bitcoin, including it being a stock with earnings or dividends, a risk-off asset, a store of value, or digital gold. These questions and criticisms reflect Schiff’s skepticism about Bitcoin’s role in investment portfolios.
Overall, Peter Schiff’s recent comments on Bitcoin’s performance against gold and MicroStrategy’s losses on recent Bitcoin acquisitions highlight ongoing concerns about the cryptocurrency’s stability and value proposition. Despite positive developments in the Bitcoin ecosystem, including ETF approvals and institutional adoption, Bitcoin’s underperformance against gold and its volatility raise questions about its role as a store of value. Schiff’s critique underscores the ongoing debate about Bitcoin’s utility as a long-term investment asset and its ability to maintain stable value over time.
