Peter Schiff, known as a bitcoin critic, again argued that bitcoin is not a real asset and cannot be compared with traditional assets such as gold, equities or real estate.

On Aug. 30, blockchain media outlet U.Today reported that Schiff recently directly rebutted crypto analyst Quinten Francois' claim comparing bitcoin's market value.

The debate began with a comparison of the size of asset classes. Francois said the gold market is about 20 times larger than bitcoin, global equities about 100 times larger, and global real estate more than 250 times larger. The remark can be read as meaning bitcoin still has substantial room to grow, but Schiff rejected the comparison itself.

Schiff drew a line, saying the comparison does not hold. He wrote, "Bitcoin is not a real asset, so its value has no relationship to gold, equities or real estate." He also asked the other side, "Why can't you understand that?"

The criticism extended to the argument that bitcoin hedges inflation. Schiff said he could not agree with the claim that bitcoin should be chosen as a way to protect against rising prices. He acknowledged some investors see it that way, but said that judgment is wrong.

Instead, Schiff pointed to traditional precious metals as an inflation hedge. He argued it is the wrong choice to pick bitcoin instead of gold or silver. He reaffirmed his long-held view that bitcoin can be valued based on expectations and preferences within the digital asset market, but is difficult to see as a defensive asset in an inflationary environment.

Schiff's stance did not change even as bitcoin prices kept rising. Responding to criticism that he missed bitcoin's rally, he wrote, "It is true that you could have made a lot of money with bitcoin, but that is already an old story." While not denying short-term profit opportunities, he made clear he does not agree with the claim that holding for the long term was the better choice.

He also questioned a holding strategy. Looking at about the past 5 years, he said it was more advantageous for him not to own bitcoin, and said bitcoin holders left money on the table by not selling. It was a direct criticism of long-term holding, one of the market's main bullish arguments.

Schiff also opposed the view that links bitcoin with artificial intelligence. He criticised bitcoin supporters for trying to connect bitcoin to the AI boom. Schiff argued, "AI is not a positive for bitcoin but a threat."

The remarks are read as distancing him from a recent market trend to interpret bitcoin alongside a technology growth narrative. Schiff made clear he does not see bitcoin as a substitute for gold, an inflation hedge or an AI beneficiary asset. His comments focus on rejecting key pillars of investment arguments around bitcoin one by one.

The exchange also again highlighted differing perceptions over whether bitcoin can be assessed in the same framework as traditional assets. With Schiff maintaining his stance that questions the nature of the asset itself rather than bitcoin's market size or price moves, the debate over how to classify bitcoin as an asset class is expected to continue.

Bitcoin is not a real asset so its value has no relationship to gold, equities or real estate. Why can't your brain understand that?