Bitcoin vs. Gold: Peter Schiff Questions BTC’s Market Cap Trend

Peter Schiff is once again challenging Bitcoin (BTC) enthusiasts, pointing out a key inconsistency in its market cap relative to gold’s. In 2021, when BTC hit its all-time high of $69,000, its market cap was 10.72% of gold’s. Today, with Bitcoin trading at $98,000, that percentage has dropped to 9.95%. Schiff questions why Bitcoin, often touted as the "new gold," is failing to expand its share of gold’s value.

Analyzing the Bitcoin-to-gold ratio, BTC/XAU has only increased by 10% from its 2021 peak to its December 2024 high. However, since both assets hit lows in early 2023, Bitcoin has outperformed gold by over 350% at its peak and 260% at its current level. This suggests that when both assets rise, BTC tends to deliver stronger gains. Yet, when comparing their highs, Bitcoin struggles to break away from gold’s dominance.

Gold continues setting new records, while Bitcoin remains below its previous all-time high. Market analyst Peter Brandt echoes Schiff’s concerns, noting that despite growing institutional adoption and media buzz, Bitcoin has yet to decisively separate itself from gold as the superior store of value.

Bitcoin bulls argue that the cryptocurrency is still evolving and will eventually dominate. However, Schiff’s question remains: If Bitcoin is truly the future of money, why hasn't it already surpassed gold?