Schiff says Bitcoin will trail gold over the next 10 years in Fox debate

Peter Schiff and Anthony Pompliano clashed over Bitcoin's long-term prospects, with Schiff betting the largest cryptocurrency will underperform gold over the next decade.

Bitcoin and gold advocates renewed their long-running rivalry on Fox Business on June 16, as economist Peter Schiff said the largest cryptocurrency would trail gold over the next 10 years.

"Bitcoin is really no higher than it was five years ago," Schiff, a longtime gold advocate and critic of the cryptocurrency, said during the "Claman Countdown" panel. "Most of the people who are in Bitcoin weren't in it back then. They don't have the big gains."

Schiff declined to bet that Bitcoin would fall to zero within the next decade but said he would wager that it underperforms gold during that period. Pompliano, founder of ProCap Financial, countered that Bitcoin's 10-year compounded growth rate of roughly 55 percent to 60 percent far exceeds gold's approximately 12 percent return, arguing that volatility creates upside during periods of rising demand.

The clash reflects competing narratives that influence capital allocation between the two scarce assets. Bitcoin ETFs have made the cryptocurrency more accessible through standard investment accounts, while gold advocates point to the metal's millennia-long track record during periods of currency weakness.

Schiff also targeted Michael Saylor's Strategy, the largest corporate holder of Bitcoin, accusing the executive chairman of destroying shareholder value by issuing stock and preferred shares to buy the cryptocurrency. Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, which pays up to 11.5 percent, now trades at a discount, Schiff said, choking off the company's ability to raise fresh capital.

Pompliano pushed back, saying Bitcoin's long-term performance remains unmatched among major asset classes. "What Bitcoin has shown is that it is the best-performing asset over long periods of time," he said, adding that concerns about government money printing continue to support both gold and Bitcoin.

The two also disagreed on whether Bitcoin has become part of the financial establishment it was designed to challenge. Schiff argued that the crypto community was among the biggest donors in the last election cycle and accused the industry of seeking political support to prop up Bitcoin. Pompliano countered that politicians often embrace technologies after they gain widespread public support.

ETF Demand Adds Pressure to the Debate

Bitcoin ETFs have made the asset easier to access through standard investment accounts. Schiff questioned whether recent buying from ETF issuers may help early investors sell into stronger demand, placing ETF flows near the center of the discussion.

Gold, meanwhile, remains in a "major, major bull market" despite a pullback, Schiff said. The metal's longer record as a hedge during currency weakness gives it an advantage over Bitcoin, he argued, pointing to the cryptocurrency's past drawdowns of more than 70 percent as evidence that high volatility can damage investor confidence.

This article is for informational purposes only and does not constitute investment advice.