While many consider Bitcoin as a hedge against inflation, Peter Schiff believes that investing in cryptos is a losing game. As he has explained, rather than being backed by a real asset, Bitcoin is supported only by people buying it, which undermines its value.
By Darya Rudz
Edited by Julia Sakovich
Updated
3 mins read
Peter David Schiff, CEO of Euro Pacific Capital Inc and financial expert known for his skepticism about Bitcoin (BTC), has commented on a “recession-proof” portfolio offered by AI chatbot ChatGPT. In his Tweet, Peter Schiff praised the chatbot for picking bonds, defensive stocks, precious metals, and cash over Bitcoin. Notably, ChatGPT did not mention the crypto at all, while investments in Bitcoin are becoming mainstream.
#ChatGPT AI is pretty intelligent after all. It didn't recommend any allocation to #Bitcoin.https://t.co/mnhRN2TmFm
— Peter Schiff (@PeterSchiff) April 6, 2023
A few days ago, Gold IRA Guide released the results of its experiment with the AI chatbot which included asking ChatGPT to suggest a “recession-proof” portfolio. The answer was surprising. Here is what ChatGPT recommended:
There is no single mention of Bitcoin in ChatGPT’s answer. When the inquiry about investing was formulated in a different manner, the chatbot did not say a single word about cryptos as well. Notably, according to ChatGPT, the portfolio it offered would have performed well during the 2007-2009 recession.
While many consider Bitcoin as a hedge against inflation, Peter Schiff believes that investing in cryptos is a losing game. As he has explained, rather than being backed by a real asset, Bitcoin is supported only by people buying it, which undermines its value. Therefore, Schiff found ChatGPT “pretty intelligent” as its investment suggestion coincides with his vision.
Apparently, ChatGPT is bullish on gold. Here is what it said when asked “Gold or Bitcoin”:
“Gold may be a better choice for those seeking a stable, long-term investment, while Bitcoin may be more suitable for those looking for a high-risk, high-reward investment opportunity.”
ChatGPT also highlights that Bitcoin is not backed by any physical asset or government and is considered by many as a speculative investment.
If you are choosing between Bitcoin and gold, all depends on your investment goals. After weighing the pros and cons of both, you should also take into consideration the governments’ approach towards crypto, especially now that they start to pay more attention to digital assets. Of course, gold is unlikely to face strict regulation or even scrutiny that exists in some countries when it comes to crypto. However, we also need to remember that cryptos have already started changing the financial world, and Bitcoin might be a good long-term investment.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.
