Brenda Kanana
Peter Schiff, an ardent critic of Bitcoin, recently took a swipe at the digital currency again, this time at MicroStrategy’s continued purchase of Bitcoin. Schiff criticized MicroStrategy’s bold $42 billion plan to buy Bitcoin within three years.
On November 27, 2024, Schiff dismissed the firm’s approach as a dangerous bet.“At this rate, the three-year plan will be completed in about 16 weeks,” He added. He said that the temporary price increase resulting from these acquisitions will be short-term, resulting in a significant drop in Bitcoin price and MicroStrategy’s stock price.
According to Schiff, the large-scale by MicroStrategy of purchasing Bitcoin is artificial price appreciation. He notes that the firm may face problems since all its eggs are in one basket, that being Bitcoin, and in the future the firm may not be able to continue funding the purchases. The critic’s warning echoes his view that this approach is actually a potential threat to both the company and its shareholders.
MicroStrategy’s long-term commitment to Bitcoin
MicroStrategy first adopted Bitcoin as a primary investment strategy in August 2020. The firm has also been known to purchase a significant number of bitcoins at one time, regardless of market fluctuations. The company’s recent purchase of 55,500 Bitcoin at about $5.4 billion strengthens its position even more. MicroStrategy now has 386,700BTC in its possession today worth more than $36 billion making the company one of the biggest corporate owners of the cryptocurrency.
Michael Saylor, the firm’s chairman, has, however, come out to defend this step, insisting that the company has no intention of selling off the Bitcoin assets in the near future. Saylor remains bullish on Bitcoin and encourages other companies to follow in the same footsteps.
This is not the first time Schiff has attacked MicroStrategy’s decision to invest in Bitcoin. Earlier in November, he targeted Saylor for his bullish stance on Bitcoin.
Schiff regrets not purchasing Bitcoin earlier
Ironically, as recently reported by Cryptopolitan, Schiff stated that he wished he could have bought Bitcoin when Bitcoin was still worth about $1. He stated, “Clearly, I wish I had bought Bitcoin when I first heard about it. I was wealthy at the time.”
Besides mocking MicroStrategy, Schiff has also berated the Trump administration for supporting Bitcoin. He said that endorsing Bitcoin would be detrimental to the US economy, and the government is most likely to manipulate capital allocation through its interactions in the cryptocurrency markets. On X, Schiff stated in a post, “Becoming the Bitcoin superpower makes America weaker.”
Trump has supported Bitcoin as a possible US national currency and has vowed to make America the leader in cryptocurrency. His opinion coincides with that of U.S. Senator Cynthia Lummis, who introduced the Bitcoin Act.
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