Bitcoin and the CNBC Pump: Is BTC the new gold?
External factors have had an outsized impact on the price of Bitcoin. In particular social media metrics, such as the number of tweets mentioning a particular cryptocurrency, have been able to send major shockwaves. Now some are accusing the mainstream media of pushing a bull run on crypto at the expense of more traditional hedges.
CNBC is one of the best known international news channels for information on business and finance. According to its own statements, CNBC reaches up to 390 million viewers worldwide. In the past, it was CNBC in particular that repeatedly put Bitcoin in the limelight and celebrated its massive price increases.
Statements such as “Bitcoin to the moon” are often made in this context. Peter Schiff, an avowed gold enthusiast, and Bitcoin opponent criticized CNBC’s coverage. He particularly disliked the fact that CNBC is now focusing more and more on BTC instead of gold. Does this mean that BTC is now finally outstripping gold?
Born2Invest is a mobile application for crypto enthusiasts and finance news. It includes news and an article aggregator and is a convenient service for monitoring the crypto market. Updated throughout the day, Born2Invest is a professionally curated digest of business and finance news from the most trusted sources.
Bitcoin Pump thanks to CNBC?
Before going to the statements of Peter Schiff and his criticism, let’s take a look at the CNBC coverage. It is almost exclusively bullish and knows no exception in superlatives. After the Bitcoin share price recorded an incredibly strong performance of 22% within 14 days in January, CNBC quickly spoke of ‘Bitcoin to the moon.’
The reactions to this tweet were largely negative – despite, or perhaps because of the good price performance. The users said that CNBC should not ‘disturb’ or even ‘spank’ the Bullrun that was just starting. Others said that it was now time for a short position.
Another tweet from CNBC also caused a sensation. This one’s from last week. It was about an interview with Mark Yusko, who explained, “why this hot rally is just starting now.” Now that these two examples show quite well that CNBC is extremely positive about Bitcoin, let’s take a look at the criticism from Peter Schiff. Let us take a brief look at the Bitcoin and Gold price performance.
Peter Schiff insulted? – Gold is underestimated
Peter Schiff’s criticism can be broken down relatively easily to a common denominator: Schiff as a great gold enthusiast feels disadvantaged. His gold is underestimated despite the recent price gains. However, CNBC almost never reports on gold and would pump Bitcoin instead.
A look at the comments also gives an indication of how the community thinks about the tweets. This ranges from enumerating the advantages of BTC over the gold to malice. For example, the user with the name @LitecoinFan said: “You’re doing a great job. Since 2007 you have managed to double your money by investing in gold.”
This post is meant ironically making fun of Peter Schiff can probably no longer be emphasized. How much truth is behind Schiff’s criticism – how strong was the ‘rise in the price of gold’ and how did Bitcoin perform during this time?
Gold price could rise 25% in the next 12-24 months
Let’s first look at another tweet that Peter Schiff wrote during his CNBC tantrum. Among other things, it deals with the forecast of Citibank, which assumes that the gold price could still rise up to $2000 in the next 12-24 months. From the current perspective, this would be an increase of 25%.
Who would have thought it? – The reactions to this tweet are similar to the reactions to the first tweet from Schiff.
Bitcoin course development beats gold
Let’s take a look at a performance of the past 30 days, the year-to-date performance, the 6-month performance, the performance in the last year and the 5-year performance. For the time being there is a fact that gold reached a new all-time high a few days ago. Despite the current positive mood on the financial market, gold, which normally correlates negatively with the development of the stock market, was able to move to a new high.
Obviously investors are speculating on an imminent end to the stock market rally and want to park part of their assets in gold as store-of-value. Let’s take a look at how clever this idea is from an investment perspective. For the periods mentioned above, the development of the gold price is as follows:
- 30 days: +5.2%
- Year-to-Date: +8.3%
- 6 months: +11%
- 1 year: +23.9%
- 5 years: +36%
Last, but not least look at the Bitcoin price-performance:
- 30 days: +17.3%
- Year-to-Date: +37.63%
- 6 months: -2.34%
- 1 year: +138.7%
- 5 years: +4039%
Thus it is clear: even if the gold price has recently completed a strong rally, it cannot hold a candle to BTC in the short, medium and long term. Bitcoin thus remains not only a good store of value but also the strongest competitor to gold.
(Featured image by Dmitry Demidko via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Canal de Isabel II Accelerates Towards Energy Self-Consumption
Canal de Isabel II will switch from the then state-of-the-art Pelton turbines of 1913 to producing green hydrogen from reclaimed...
Dogecoin: Doge Whales Return Due to Bullish Metrics
In the short term, Dogecoin is encountering its first major resistance at $0.075, although a larger obstacle lies at $0.08....
Exit for Kippy, which Had Closed Two Equity Crowdfunding Rounds
Kippy recently participated in the third batch of the A-Road acceleration and fundraising program which, through ongoing training and mentorship...
Laminar Pharma Opens a €5 Million Round through Capital Cell
Looking ahead to 2024, the group plans to reach break-even, when the European Medicines Agency approves its drug against glioblastoma,...
Bitcoin Surges 4% after US Debt Limit Suspension Deal
While the tentative agreement has yet to be approved by Congress, its announcement has already had a positive impact. BTC...
Featured2 weeks ago
Ripple Launches Institutional CBDC Platform for Millions of Users
Featured1 day ago
How the Fintech Sector Helps with Financial Inclusion
Featured1 week ago
Two Spanish Startups Selected by the Amazon Sustainability Accelerator
Crypto2 weeks ago
Is Bitcoin Down Because of Ordinals, BRC-20 Tokens, and Miners?