ChatGPT chooses gold over Bitcoin, says crypto critic Peter Schiff
Artificial intelligence tool ChatGPT appears to have chosen a side in the long-running debate over the respective value of gold versus Bitcoin as a good investment. Financial commentator Peter Schiff has praised the prominent generative text engine for allegedly favoring gold.
“AI is quite intelligent after all,” he tweeted on Wednesday. “It did not recommend any allocation to Bitcoin.”
The investor referred to a report from last week covering ChatGPT’s idea of a “recession-proof” portfolio. The document – published in the “Gold IRA Guide” – claimed that ChatGPT recommended a 20% allocation to gold and other precious metals to minimize the impact of a market downturn.
The rest of its hypothetical portfolio consisted of bonds (40%) “defensive” stocks (30%) and cash (10%) – with no mention of Bitcoin.
Still, the AI bot’s response may not necessarily be a blow to crypto, or a promotion of gold. When Decrypt directly asked on April 6 for his opinion on “Gold or Bitcoin”, ChatGPT said that the choice of which to buy ultimately depends on your investment goals.
“[Gold] is a tangible asset that is considered a safe haven in times of economic uncertainty,” it says. “Gold is a finite resource and is difficult and expensive to extract, giving it a certain level of scarcity and intrinsic value.”
Boten contrasted the historical money with Bitcoin, which is “not backed by any physical asset or government” and “is considered by many to be a speculative investment.”
“Gold may be a better choice for those seeking a stable, long-term investment, while Bitcoin may be more suitable for those looking for a high-risk, high-reward investment opportunity,” it concluded.
It should also be noted that the body of knowledge on which ChatGPT is based is only up-to-date 2021and probably does not include the significant movements – both up and down – that the price of Bitcoin has seen since.
Both gold and Bitcoin investors are win big this year, with each asset up 10% and 68% respectively so far this year. The former has just crossed a multi-year resistance level of $2,000 per ounce, which Schiff believes could now act as the “launch pad for a moonshot,” according to a chirping on Thursday.
Gold and Bitcoin are often compared as forms of money due to their strong monetary properties – esp scarcity, which theoretically makes them resistant to inflation or monetary deterioration like fiat currencies. Both assets rose in March after the Federal Reserve bailed out depositors of Silicon Valley Bank, injecting hundreds of billions of dollars back into the banking system to prevent similar bank failures.
While Schiff takes the opportunity to double the gold, an army of Twitter Bitcoiners continues to push back – including his own son.
“Long-term bitcoin is a much better buy than gold,” Spencer Schiff added Decrypt via DM on questions about gold’s latest gains. “Bitcoin will probably demonetize gold in the long term. As for the short term, I have no idea, I’m not a trader I just focus on [the] long term.”
