Bitcoin (BTC) critic Peter Schiff said Tuesday the next four years will be "much worse" for Bitcoin as gold approaches $4,500 per ounce.
Schiff argues Bitcoin has lost 46% of its value when priced in gold since November 2021.
With gold trading near $4,490 and Bitcoin struggling around $87,000, the economist claims his thesis that "Bitcoin is digital gold" has failed.
Bloomberg Intelligence strategist Mike McGlone has echoed similar warnings, calling Bitcoin "dead money" that carries extreme risk without generating returns.
What Happened
Schiff noted that when Bitcoin hit $69,000 in November 2021, it could buy approximately 38 ounces of gold.
At current prices, Bitcoin buys roughly 19 ounces of gold, representing a 50% decline in relative purchasing power.
Gold has rallied more than 70% in 2025, marking its strongest annual performance since 1979.
The precious metal hit record highs above $4,477 per ounce Monday driven by geopolitical tensions, central bank buying, and Federal Reserve rate cuts.
Bitcoin trades approximately 30% below its 2025 peak near $126,000 reached in October.
McGlone argues Bitcoin has become an investment carrying high risk without corresponding returns.
The Bloomberg analyst predicted Bitcoin could fall to $10,000, comparing current market conditions to the 1929 Great Depression.
He cited Bitcoin's underperformance relative to both gold and technology stocks as evidence of its failing value proposition.
Why It Matters
Schiff has predicted Bitcoin's collapse since it traded below $300, making him consistently wrong for over a decade.
His analysis gains attention during periods when Bitcoin underperforms traditional assets like gold.
The 2025 market environment has favored safe-haven assets over risk assets.
Capital has rotated into gold and silver while Bitcoin has struggled to maintain momentum despite spot ETF approvals.
McGlone noted that Bitcoin's rally following ETF launches failed to push the cryptocurrency to sustainable new highs relative to inflation or stocks.
However, Bitcoin remains up substantially from historical lows and maintains a market capitalization exceeding $5 trillion across the crypto sector.
The cryptocurrency has survived multiple 80%+ drawdowns throughout its history while eventually reaching new all-time highs.
Gold's performance in 2025 represents an exceptional year rather than typical market conditions, with analysts noting the rally may moderate in 2026.