The precious metal gold has seen a major spike this week, with prices riding six-year highs above $1,400 per ounce due to the US-China standoff and instability in the Persian Gulf.
At the same time, the world's most popular cryptocurrency has had a huge rally this year. Bitcoin has soared from below $4,000 in January to nearly $13,000 as of Wednesday.
While gold is bullish in times of instability, the price of cryptos also usually rises with growing volatility and risk.
However, bitcoin will never evolve into a safe haven asset like gold, says CEO of Euro Pacific Capital Peter Schiff. “People are buying gold because they are finally waking up to the reality, something they should have known a long time ago,” he told RT’s Boom Bust.
Discussing speculation that central banks are buying bitcoin, Schiff said: “There is no way. I mean central bankers may be dumb but they certainly are not that dumb. They are not going to include bitcoin or any other cryptocurrency as part of their reserves.”
He explained that they are buying gold and will continue doing that. “That is the smart thing to do. There’s digital crypto-risk and once the bottom drops out, it’s a long way down.”
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