Peter Schiff, a well-known gold bug and a vocal critic of Bitcoin, has applauded ChatGPT, an AI chatbot, for not including Bitcoin in its recommended recession-proof assets list. Schiff, who is the CEO of asset management company Euro Pacific Capital, took to Twitter to express his appreciation for ChatGPT’s intelligence in recommending gold and other investment vehicles over Bitcoin.
According to a report by Newstrail, ChatGPT suggested that investors allocate up to 40% to bonds, 30% to defense stock, 20% to gold and other precious metals, and 10% to cash. The AI tool noted that these assets are safe havens during economic downturns.
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Schiff, who has repeatedly warned investors to avoid the nascent crypto market, believes that Bitcoin does not fit the inflation hedge narrative given to it by the crypto world. Despite Bitcoin’s recent surge amid the US banking crisis, Schiff reiterated that the precious metal has repeatedly proven itself for hundreds of decades, unlike Bitcoin.
Gold bugs like Ray Dalio and Schiff proposed a lower allocation percentage to precious metals than ChatGPT’s recommended 20%. Schiff noted that ChatGPT’s exclusion of Bitcoin from its recommended recession-proof assets list demonstrates the AI’s intelligence.
Investors have always sought assets that can withstand economic downturns. During times of economic uncertainty, traditional safe havens like gold, silver, and bonds have been the go-to assets for investors. However, the crypto world believes that Bitcoin is digital gold and could be a safe haven during an economic meltdown.
Despite the hype around Bitcoin, Schiff’s criticisms of the digital asset persist. As the market continues to evolve, it will be interesting to see if Bitcoin can prove itself as a safe haven asset like gold during an economic crisis.