Key Points
- Peter Schiff continues to criticize MicroStrategy’s Bitcoin investment strategy, despite the company’s stock reaching an all-time high.
- Schiff, a vocal crypto critic, maintains his belief that Bitcoin lacks intrinsic value, unlike traditional investments like gold.
Peter Schiff, a well-known critic of cryptocurrencies, has once again aimed his criticism at MicroStrategy, a firm led by Michael Saylor. Schiff’s recent comments targeted MicroStrategy’s stock (MSTR), which has hit a record high following the firm’s ambitious plan to become a trillion-dollar Bitcoin bank.
Schiff’s Ongoing Skepticism
Schiff’s skepticism regarding companies heavily invested in cryptocurrencies, particularly Bitcoin, is ongoing. In a recent social media post, Schiff called MicroStrategy’s stock the “most overvalued” in the MSCI World Index and predicted a “real bloodbath” when it crashes. Despite this, many have taken Schiff’s warning lightly.
Schiff’s argument against Bitcoin is that it doesn’t yield anything. He stated that while one can sell Bitcoin for capital gains or write calls against it for income, Bitcoin itself has no yield. Additionally, he pointed out that owning Bitcoin in an ETF incurs custody fees.
Why Schiff Opposes Bitcoin
Schiff, a staunch advocate of gold and opponent of cryptocurrencies, has consistently expressed his skepticism towards Bitcoin. He argues that Bitcoin is a speculative asset that lacks the inherent value found in traditional investments like gold.
In contrast, MicroStrategy’s strategic shift towards Bitcoin has proven highly profitable. The company’s market value has soared from $1.5 billion to over $40 billion in the past four years, largely due to Saylor’s decision to invest heavily in Bitcoin. This has established MicroStrategy as a key player in the Bitcoin market, with control over 252,220 BTC.
Schiff recently joked that Saylor should consider borrowing the $4.3 billion worth of Bitcoin seized from the Silk Road marketplace to further boost MicroStrategy’s already large Bitcoin holdings. This remark underscores Schiff’s ongoing criticism of Saylor’s aggressive Bitcoin strategy and the company’s commitment to expanding its cryptocurrency assets.
Despite these discussions, MicroStrategy’s stock price saw a slight increase, reflecting investor confidence in the company’s Bitcoin-focused strategy. Meanwhile, Bitcoin’s price experienced a slight dip over the past 24 hours, settling at $66,947.37.