Peter Schiff described the market’s obsession with Bitcoin as a gold record high

The yellow metal recently hit a new record high of $2,630, but prominent gold advocate Peter Schiff cautioned that investors are not paying attention.

According to him, the obsession with the Bitcoin (BTC) market has overshadowed the important signals that gold is sending about the state of the economy.

Schiff blames Bitcoin attention

“By focusing too much on Bitcoin, investors are missing out on gold's gains and increased value,” Schiff tweeted on September 23, adding that inflation is set to worsen due to loose monetary policy.

Often referred to as “digital gold”, the number one cryptocurrency has recently made modest gains. However, the veteran stockbroker remains unimpressed, saying the cryptocurrency has not reached its previous highs and continues to trade in a narrow range.

In addition, he suggested that the largest cryptocurrency is unwittingly helping to cover up economic strategy mistakes allegedly made by the US Federal Reserve. “Bitcoin is the best thing that happened to the Fed, because it takes the focus away from gold, otherwise it exposes their policy mistakes,” said the trader.

Despite BTC's detractors' warnings, many in the market see it as a legitimate alternative to gold. For example, responding to Schiff's claim, one crypto analyst known as “Noodles” said there was a unique “accordion-like” relationship between the two products. This means that a correction in the precious metal may indicate a rally in the cryptocurrency.

Is gold a better hedge against inflation than bitcoin?

The crypto detractor is adamant, however, that BTC is not a good hedge against inflation due to its volatility and speculative nature. In the year While gold is on course for its best year since 1979, the crypto asset has yet to test its previous all-time high, he said.

Gold is rising not only because of the inflation caused by the Fed, but in anticipation of the higher inflation the Fed will create in the near future.

In his opinion, cryptocurrency is more of a distraction than a solution. Pro-free market investors are urged to pay close attention to the historical significance of gold's movement.

This isn't Schiff's first attempt to undermine BTC. However, the founder of Euro Pacific Capital has a good track record regarding his BTC predictions.

In May, he said Ethereum ETFs would be bad for the trillion-dollar crypto, as investors would buy their BTC allocations into ETH ETFs. At that time, Bitcoin was trading above $70,000, which was the highest level in six weeks at the time.

At another point, he called BTC “fool's gold” after the coin stumbled in the market in response to the geopolitical tensions between Iran and Israel.