Is the "digital gold" theory of Bitcoin falling apart? Economists warn of gloomy prospects four years from now.

Economist Peter Schiff recently threw a bucket of cold water — he bluntly stated that Bitcoin's days will not be easy in the next four years and even publicly declared that the “digital gold” strategy of Bitcoin has gone bankrupt. The data is right in front of us, measuring Bitcoin's purchasing power against gold, which has fallen a staggering 46% from its peak in 2021, indicating that Bitcoin's promise of being anti-inflation and a store of value is somewhat dubious.

This judgment is not isolated. The entire market is currently brewing a wave of “risk aversion trend”, with large sums of money beginning to flee from high-risk digital assets like Bitcoin, turning to traditional safe-haven assets such as gold and bonds. Bloomberg analyst Mike McGlone has also joined the chorus of pessimism, bluntly labeling Bitcoin as “dead money”—high risk, low returns, and extremely poor cost-effectiveness.

It seems that many market observers are re-evaluating the position of Bitcoin in asset allocation. When the global economic outlook becomes unclear and risk aversion rises, Bitcoin, as a highly volatile asset, indeed does not appear to be in demand.