Famous gold bug and bitcoin critic Peter Schiff has once again blasted the leading cryptocurrency for not making it to ChatGPT’s recommended recession-proof assets list.
In his latest jab against Bitcoin, the American stockbroker and CEO of asset management company Euro Pacific Capital said the artificial intelligence (AI) chatbot is smart for recommending gold and other investment vehicles over Bitcoin.
Schiff made the statement in a tweet on Thursday while referencing an article by Newstrail, which highlighted a breakdown of ChatGPT’s recommended recession-proof portfolio.
According to the report, the bot suggested that investors allocate up to 40% to bonds because they carry insignificant risks compared to other assets. The AI tool further suggested a 30% allocation to defense stock since they are generally less affected by the economic cycle.
Gold and other precious metals appeared next on ChatGPT’s list, with a 20% allocation recommended. This exceeds the suggested percentage of prominent gold bugs like Ray Dalio and Schiff proposed. The chatbot noted that precious metals, especially gold, are a safe haven during economic meltdowns.
Lastly, the artificial intelligence tool recommended a 10% allocation to cash because it allows investors to leverage buying opportunities or cover unexpected expenses.
Commenting on the report, Schiff noted that ChatGPT’s exclusion of Bitcoin from its recommended recession-proof assets shows that the AI is “pretty intelligent.”
As a vocal Bitcoin critic, Schiff frequently warns investors to avoid the nascent crypto market. The Euro Pacific CEO doesn’t believe Bitcoin fits the inflation hedge narrative the crypto world has given to the digital asset.
Last month, when bitcoin jumped 20% to $25,000 amid the US banking crisis that saw the downfall of several banks, Schiff reiterated that the surge in BTC price does not mean it is a better inflation hedge than gold. The stockbroker believes the precious metal has repeatedly proven itself for hundreds of decades, unlike Bitcoin.