Schiff w/ Chasse: Bitcoin is a Risky Asset

In a recent interview with Kyle Chasse, Peter walks listeners through a warning many sound-money advocates have been making for years: the next big price reset may not look dramatic in dollar terms, but in other terms it could be devastating. He connects the rising price of gold, the shift by foreign central banks away from the dollar, and the fragile footing of Bitcoin to the same fundamental economic problem: unsound money.

He starts by explaining why the next big market collapse might look mild in dollar terms but catastrophic once you price assets in sound money — gold — and why nominal stock indices can hide massive real losses:

We’re not going to have a Great Depression style crash because we’re not on a gold standard anymore like we were during the Great Depression. But I think that if you measure the price of stocks in terms of gold, we could absolutely see a decline of that magnitude, which is just something like a 90 percent decline in the value of stocks. Now, look, stocks are down 70% priced in gold already if you go back to the year 2000. So, you know, we’re already seeing this major decline in the real value of U.S. stocks; it’s just that, you know, the nominal price doesn’t go down because we keep printing dollars.

He then links that valuation problem to where real money is currently flowing, arguing foreign central banks are increasingly buying gold instead of holding dollars or Treasuries: