Peter Schiff, a well-known gold bug and critic of Bitcoin, has once again criticized the leading cryptocurrency for not being included in ChatGPT’s list of recommended recession-proof assets.
In his latest attack on Bitcoin, CEO of Euro Pacific Capital and American stockbroker Schiff claimed that ChatGPT’s artificial intelligence (AI) chatbot is intelligent for choosing gold and other investment options over Bitcoin.
ChatGPT’s List of Recession-Proof Assets
Schiff made this statement in a tweet on Thursday while referring to an article by Newstrail which had highlighted a breakdown of ChatGPT’s recommended recession-proof portfolio.
According to the report, the chatbot suggested that investors allocate up to 40% of their portfolio to bonds as they carry minimal risks compared to other assets. Furthermore, the AI tool suggested 30% allocation to defense stocks as they are generally less affected by the economic cycle.
Following defense stocks were gold and other precious metals with ChatGPT recommending a 20% allocation. This exceeds the suggested percentage of prominent gold bugs like Ray Dalio and Schiff himself. The chatbot stated that precious metals, particularly gold, are a safe haven during economic crises.
Lastly, the AI tool proposed a 10% allocation to cash as it allows investors to leverage buying opportunities or cover unforeseen expenses.
Schiff Appreciates ChatGPT
Speaking about the report, Schiff added that ChatGPT’s exclusion of Bitcoin from its recommended recession-proof assets list showcases the AI’s intelligence.
— Peter Schiff (@PeterSchiff) April 6, 2023
Schiff, a vocal critic of Bitcoin, often warns investors to stay away from the nascent crypto market. The CEO of Euro Pacific doesn’t believe that Bitcoin fits the inflation hedge narrative that the crypto world has given to the digital asset.
Last month, when Bitcoin’s price rose by 20% to $25,000 during the US banking crisis that witnessed the downfall of various banks, Schiff emphasized that the surge in the Bitcoin price doesn’t necessarily mean that it is a better inflation hedge than gold. Schiff believes that gold has repeatedly demonstrated itself as an inflation hedge for hundreds of years, unlike Bitcoin.