thecryptobasic.com
Bitcoin is once again facing renewed criticism for its recent price underperformance, particularly against gold, the largest precious metal.
As Bitcoin continues to suffer intense volatility, longtime critic Peter Schiff has launched a fresh attack on the asset. In a Tuesday tweet, he capitalized on the recent dip to highlight the stark contrast in performance between $BTC and gold.
Key Points
- Bitcoin is once again facing renewed criticism for its recent price underperformance, particularly against precious metal gold.
- As Bitcoin continues to suffer intense volatility, longtime critic Peter Schiff has launched a fresh attack on the asset.
- Schiff argues that, measured against gold, Bitcoin has quietly lost significant ground over the past four years.
- A $10,000 allocation to Bitcoin in November 2021 would now sit at roughly $9,100, while the same $10,000 invested in gold over that period would have climbed to more than $27,000.
- Proponents argue that expecting Bitcoin to outperform a centuries-old metal during turbulent conditions could be a tall order for Bitcoin at this point.
Peter Schiff Criticizes Bitcoin
Schiff pointed out that, measured against gold, Bitcoin has quietly lost significant ground over the past four years. Since its November 2021 peak, Bitcoin has fallen more than 66% when priced in gold. His comparison reframes the usual dollar-based charts, instead comparing Bitcoin’s purchasing power relative to the traditional store of value.
Schiff highlighted that a $10,000 allocation to Bitcoin at the November 2021 high would now sit at roughly $9,100. Recall that $BTC topped at $69,000 during that bull run, a price it now sits below following its drop from $126,200 in October 2025 to $63,000 today.
In contrast, the same $10,000 invested in gold over that period would have climbed to more than $27,000. Notably, gold closed at $1,773 in November 2021, a 189% increase from its current market price of $5,133. Within this period, $BTC has dropped from 34.5 ounces of gold to 12.3 ounces, an over 64% decline.
Viewed through that lens, the numbers look very different from the long-term bullish narratives often associated with Bitcoin. For context, Bitcoin once traded under $1 but has since increased explosively to its current valuation through its 17-year history.
The asset is also up a staggering 320% from its previous cycle’s lows of $15,000 in November 2023, compared with gold’s 152% rise over the same period.
Rather than acting as a hedge, Bitcoin has trailed badly in relative terms.
Bitcoin’s Store-of-Value Narrative Faces Pressure
For years, Bitcoin’s identity has gradually shifted from a peer-to-peer cash system to “digital gold.” Proponents argued that scarcity and a fixed supply would allow it to protect wealth during periods of uncertainty.
Yet the recent run has complicated that thesis. When markets turned defensive, capital often rotated into traditional safe havens, such as gold, rather than Bitcoin.
This divergence has become more visible during periods of macro stress. Inflation fears, rate uncertainty, and geopolitical risks have pushed investors toward assets with longer track records. Gold has benefited from that flight to safety, while Bitcoin has tended to mirror the performance of risk assets.
Schiff has reiterated this narrative several times. CNBC crypto trader Ran Neuner also stressed this point, noting that the store-of-value narrative for Bitcoin is now under strong scrutiny.
However, proponents argue that expecting an asset seen as a modern store of value to outperform a centuries-old metal during turbulent conditions could be a tall order for Bitcoin at this point.
A Mere Cyclical Reset
Additionally, Bitcoin advocates also argue that the asset has always moved in cycles rather than steady trends. As such, strong rebounds have repeatedly followed periods of deep drawdowns, driven by supply halvings, liquidity shifts, and sentiment extremes.
From this perspective, the underperformance against gold during its correctional phase does not automatically paint the whole picture. Bitcoin completed a cycle last year and is historically in a period of price pullback.
Still, the criticisms highlight how expectations have evolved. Many now believe that with institutional presence, Bitcoin would mirror gold during crises.