Peter Schiff, a well-known critic of Bitcoin (BTC), has taken yet another dig at the world’s largest cryptocurrency by market cap. This time, he drew on investment allocation advice from ChatGPT, a leading AI language model.
In response to an article published on April 6th by Newstrail.com, which detailed ChatGPT’s recommendation of massive allocations in gold for its “recession-proof” portfolio, Schiff commented on Twitter.
The report, which has since been suspected of being fake news, stated that ChatGPT’s ideal model of a “recession-proof” investment portfolio includes a significant 20% allocation in gold and other precious metals, far exceeding the number proposed by prominent “gold bugs” wealth managers like Ray Dalio and Schiff himself.
Schiff’s tweet read: “ChatGPT AI is pretty intelligent after all. It didn’t recommend any allocation to Bitcoin.” The comment was a subtle jab at Bitcoin, which Schiff has been criticizing for years. He has repeatedly argued that Bitcoin is a speculative bubble with no intrinsic value.
While Schiff may not agree with ChatGPT’s recommendation to allocate a significant portion of one’s portfolio to gold, the AI’s advice is worth considering. With the global economy still in flux due to the ongoing pandemic, many investors are looking for ways to protect their assets from potential downturns.
The Newstrail.com report shows that ChatGPT recommends investing 20% in gold, 40% in fixed-income securities, and 40% in equities. The portfolio breakdown shows that gold is crucial in diversifying investments and mitigating risk.
Nevertheless, the investing guidance offered by ChatGPT may not be to everyone’s taste. Still, it serves as a reminder that there are several methods to safeguard one’s investments in unpredictable times.
Only time will tell if Schiff’s criticisms of Bitcoin are true or if the digital currency keeps demonstrating its potential as a store of value.
Community Response To Bitcoin Critic’s Tweet
Peter Schiff’s recent tweet about ChatGPT’s investment advice has sparked a mixed response from the cryptocurrency community. While some have praised Schiff for highlighting the importance of diversification, others have criticized his anti-Bitcoin stance and questioned the reliability of ChatGPT’s recommendations.
In response to Schiff’s tweet, one Twitter user urged caution, writing: “Do Not Trust, Verify. Show the prompt, Peter. You get what you put in…” The user pointed out that while Bitcoin was not included in ChatGPT’s recommended portfolio, the 20% allocation to gold was hardly “massive.” In fact, the user argued, it represented a 95% allocation “against” gold.
Another user challenged Schiff directly, writing:
PeterSchiff, you are gonna trust a machine that says to keep depreciating cash on hand? What’s the other 80%? Not in good company, is my guess.
The user’s comment reflects a common criticism of ChatGPT’s investment advice, which some argue is too conservative and fails to take into account the potential for high returns in other asset classes.
However, not everyone was critical of Schiff’s tweet. Some users accused him of only talking about Bitcoin to gain attention.