Anthony Pompliano argues that although gold has shown strong performance in dollar terms since January 2020, it has lost 84% of its value when measured in Bitcoin over the same period.
Pompliano, the CEO of Professional Capital Management (PCM), made the assertion during his recent appearance on FOX Business, where he framed Bitcoin as a safe haven asset.
Gold and S&P Down Since 2020 in Bitcoin Terms
The American businessman pointed out that while many investors celebrate nominal gains in gold or the S&P 500 when priced in dollars, the picture looks entirely different when those assets are measured against Bitcoin.
Specifically, Pompliano stated that since January 2020, the S&P 500 has risen by 100%, while gold has increased by about 150% during the same timeframe. According to him, these assets only appear to have gained value because the U.S. dollar has been consistently declining.
Despite these gains, Pompliano said both gold and the S&P 500 have lost 84% and 88% of their value when denominated in Bitcoin since January 2020.
Indeed, this argument holds when examining market data from platforms like XE.com. The gold/BTC chart shows a massive loss of 75.55% over the past five years, while the BTC/gold chart reflects an impressive gain of 310%.
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Gold-Bitcoin chart from XE.com
Bitcoin as a Hurdle Rate
Highlighting Bitcoin’s remarkable performance during the same period, Pompliano noted that BTC has surged by roughly 1,500% since January 2020.
His argument positions Bitcoin as a “hurdle rate” for measuring performance, rather than relying on the dollar. According to his analysis, while stocks and gold might seem to perform well in dollar terms, they are actually losing value when compared to Bitcoin.
Pompliano’s remarks come as gold proponents continue to criticize Bitcoin amid the precious metal’s ongoing rally.
Notably, gold reached an all-time high of $4,376 today. It has been steadily climbing due to mounting economic uncertainties, particularly escalating trade tensions between the United States and China.
However, Bitcoin has been reacting negatively to macroeconomic pressure. The leading cryptocurrency fell below $104,000 today. Amid Bitcoin’s recent correction, Peter Schiff urged investors to liquidate their BTC holdings and shift to gold.
Schiff also claimed that gold is more likely to reach a price target of $1 million than Bitcoin. Despite such criticisms, Pompliano maintains that gold, while seemingly performing well in fiat terms, is losing value when denominated in Bitcoin. He emphasized that anyone who cannot beat Bitcoin should simply buy it.
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