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Goldbugs Renew Mocking Bitcoin as the Yellow Metal Gold Hits All-Time High

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The price of Gold soared reaching $2,304 per ounce on April 3, 2024, according to data from the American Hartford Group.

This marked an all-time high for the metal, which has long been revered as a safe-haven asset and a hedge against economic turmoil.

The surge in gold prices can be attributed to a confluence of factors that have fueled demand and investor confidence.

Growing geopolitical tensions around the world, coupled with lingering uncertainty surrounding potential interest-rate cuts, have contributed to gold’s newfound strength.

READ MORE:Secrets of a Self-Made Millionaire: How to Build Wealth Through Passive Income 

Additionally, the ongoing trend of de-dollarization, as nations seek to reduce their reliance on the U.S. dollar as the global reserve currency has sponsored the surge.

Goldbugs’ Relentless Assault on Bitcoin

As the metal continued in its surge, gold investors, often referred to as “goldbugs,” seized the opportunity to renew their mockery and belittlement of Bitcoin.

Peter Schiff, a prominent gold bull and outspoken Bitcoin detractor, took to X to launch a mocking attack on the world’s largest cryptocurrency.

In his post, Schiff claimed that in the second quarter of 2024, Bitcoin had declined by 7%, while silver and gold had risen by 8.7% and 3.4%, respectively.

With a smug tone, he asserted that “the results speak for themselves,” implying the supposed superiority of precious metals over Bitcoin.

However, Schiff’s claims conveniently overlooked a crucial detail – the second quarter had only just begun three days before his post.

When taking a broader view, the reality painted an entirely different picture.

Bitcoin, far from weakening, had gained a remarkable 55% in 2024, significantly outperforming gold’s gains over the same period by a factor of five.

Despite the barrage of criticism and mockery from goldbugs, Bitcoin has continued to attract a growing number of enthusiasts and believers.

Many are drawn to its innovative nature, decentralized architecture, and the promise of disrupting traditional financial systems.

Environmental Concerns and Counterarguments

Another line of attack employed by Bitcoin detractors centered on the cryptocurrency’s energy consumption, particularly in the power-intensive mining process.

Charlie Morris, an analyst and researcher at ByteTree, took a jab at Bitcoin, claiming that gold had reached its all-time high “without electricity consumption,”.

This implies the perceived environmental advantage of gold over the energy-hungry cryptocurrency.

However, this criticism was swiftly countered by Daniel Batten, an environmentalist and Bitcoin ESG researcher.

Batten pointed out that the energy required for gold extraction is mainly derived from fossil fuels.

He explained that it has a far higher environmental impact and emission intensity compared to Bitcoin mining, which is fully electrified.

Moreover, Batten highlighted the harmful effects of gold mining on local ecosystems.

He noted that the process often leaves behind toxic substances such as mercury and arsenic, contaminating land and water supplies in the surrounding areas.

In contrast, Bitcoin mining undoubtedly consumes large amounts of electricity.

However, its environmental footprint can be eased through the adoption of renewable energy sources and more efficient mining practices.

Interestingly, while the longstanding goldbugs remained steadfast in their mockery of Bitcoin, investment trends told a different story.

During the period from the start of the year to mid-February, the 14 leading gold-tracking exchange-traded funds (ETFs) had collectively lost $2.4 billion in value.

However, spot Bitcoin funds had seen $3.89 billion in inflows over the same period, signaling a growing appetite for cryptocurrency investments among investors.

 

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