Bitcoin’s performance relative to gold has fallen back to levels last seen nearly a decade ago, reopening long-running questions about the cryptocurrency’s reliability as a long-term store of value.
Economist and crypto skeptic Peter Schiff said Bitcoin is now valued at roughly 15.5 ounces of gold, representing a 57% decline from its 2021 peak when measured against the precious metal. The ratio is only slightly higher than Bitcoin’s 2017 level, despite years of institutional adoption and Wall Street engagement.
Bitcoin is now worth just 15.5 ounces of gold, down 57% from its 2021 high and just 10% above its 2017 high. Despite all the hype and support from Wall Street and the Trump administration, most people who now own Bitcoin would have been better off buying gold or silver instead.
— Peter Schiff (@PeterSchiff) January 29, 2026
In a post on X, Schiff argued that Bitcoin has failed to deliver superior protection compared with traditional safe-haven assets, claiming most current holders would have seen better returns in gold or silver.
Gold’s rally challenges Bitcoin’s safe-haven narrative
Schiff’s remarks come as gold and silver continue to attract investor inflows, driven by geopolitical instability and uncertainty over interest rate policy. Precious metals have surged while Bitcoin has struggled to regain sustained upside following recent pullbacks.
“Most people who now own Bitcoin would have been better off buying gold or silver,”
Schiff wrote, reinforcing his long-held view that digital assets remain inferior to tangible stores of value.
Meanwhile, Bitwise Chief Investment Officer Matt Hougan said gold’s move above $5,000 per ounce reflects more than short-term fear. He noted that nearly half of gold’s dollar-based value has been created in the past 20 months, pointing to the long-term effects of debt growth, currency debasement, and expansive monetary policy.
Hougan also highlighted growing investor demand for assets that operate outside direct government control, a trend that could still benefit crypto over time despite near-term headwinds.
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Bitcoin pressured by Fed stance and geopolitical tensions
Bitcoin has slipped back below $89,000, weighed down by tighter financial conditions and rising geopolitical risks that have dampened appetite for speculative assets.
In its Charting Crypto Q1 2026 report, Coinbase revealed that 71% of institutional investors and 60% of independent investors surveyed view Bitcoin as undervalued when trading between $85,000 and $95,000.
With Federal Reserve Chair Jerome Powell signalling no urgency to cut rates and geopolitical uncertainty persisting, analysts say Bitcoin is likely to remain a higher-risk trade until monetary policy eases or global tensions subside.
Do investors need to choose one over another?
By mid-2026, the more relevant question may be what each asset is actually being used for.
Gold remains deeply embedded in central-bank reserves and traditional wealth preservation. Bitcoin, meanwhile, is increasingly being held by asset managers, corporations and some governments as a newer form of scarce digital money.
Their different behavior can therefore reflect different investor bases rather than a simple winner-and-loser contest.
Bitcoin also retains one advantage that gold cannot easily replicate as it can be transferred globally without physical movement and can operate outside traditional banking infrastructure. But that advantage comes with substantially greater price volatility.
Gold is being treated as the defensive asset of choice while Bitcoin is still being priced partly as a high-beta, liquidity-sensitive asset. Until that behavior changes more consistently, the “digital gold” label will remain more of a long-term thesis than an established market reality.
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