With certain people like El Salvador’s president, Nayib Bukele being extremely bullish on Bitcoin, other individuals like economist Peter Schiff have remained extremely bearish on it.
In fact, Bukele recently reacted to one of Peter Schiff’s tweets with a “stonks” meme.
Nayib Bukele Used the ‘Stonks’ Meme
In order to provide more context, the “stonks” meme, according to KnowYourMeme, is usually used as part of jokes that refer to making bad financial-related decisions.
Peter Schiff made a reference to people who bought Bitcoin at $36,500 and said that they “wasted” their money. In addition, Schiff also noted that for those who “want to make bad bets on Bitcoin, do it with your own money.”
President of El Salvador Reacts to Economist Peter Schiff
Schiff then went on to call out investors, saying “why didn’t you include in your tweet how many Bitcoin you HODL, and how much money you have already lost?”
In addition, the economist reiterated that he warned people not to buy the last dip. He likewise also said that people should not buy the next one either.
To this tweet, the President of El Salvador, Nayib Bukele, who is responsible for pushing the country to its current adoption of Bitcoin as a legal tender, replied with a “stonks” meme.
It should be noted that this is actually not the first time that the president has reacted to a statement made by Peter Schiff.
— Nayib Bukele 🇸🇻 (@nayibbukele) February 6, 2022
In a tweet published Feb 6, Nayib Bukele retweeted Peter Schiff’s tweet with a caption “Peter Schiff” with a laughing while crying emoji.
Peter Schiff 😂 https://t.co/h8qMib3ktv
— Nayib Bukele 🇸🇻 (@nayibbukele) February 5, 2022
Peter Schiff Told People Not to Buy Bitcoin When It was Still $724.07
It can be said that Schiff has actually been a long time disbeliever of Bitcoin. As a reply to the thread, a certain account retweeted another statement made by Schiff.
As seen in the tweet, Schiff said “thinking of buying Bitcoin instead of precious metals? Think again! Peter Schiff explains why in an exclusive video.”
down unbelievably badhttps://t.co/KaL1Mi3hjO
— ₿en 🦍🖍️ (@benwehrman) February 5, 2022
When backtracking the data on StatMuse, the price of Bitcoin during the date the tweet was published was at $724.07. This meant that if investors did the opposite of what Schiff was suggesting at that time, they would have made almost 58x their initial investment.
This means $100 turned into $5,782.80 at that period of time.
What Would have Happened if Investors Followed Peter Schiff’s Advice?
Should an investor have followed Schiff’s advice and bought gold as suggested, they would have purchased the precious metal at the price of $1,241.75 per ounce. It should be noted that the current price of gold is at around $1,808.00.
This shows that if one had followed the economist’s advice and bought gold, they would have made about $566.25 if they bought 1 oz and held it for 9 years.
If one invested $100 in gold during the time of Schiff’s tweet, they would have made 45.6% in total or roughly 5% per year over a nine year period. This is lower than the average market return for the last 20 years for the S&P 500 at 7.45%.
This is roungly around 5.3% when adjusted for inflation, according to SoFi.
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Written by Urian B.
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