🔥 Land A High Paying Web3 Job In 90 Days LEARN MORE

Peter Schiff criticizes MicroStrategy’s Bitcoin strategy

In this post:

  • Peter Schiff criticized MicroStrategy’s $42 billion plan to buy Bitcoin.

  • MicroStrategy began buying Bitcoin in 2020 and has accumulated 386,700 BTC.

  • Schiff regrets not buying Bitcoin earlier when it was valued at $1.

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.

See also  India’s economy expands by 5.4% in the last quarter fails to meet expectations

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. 

See also  Is CZ's Alt key post a hint?

Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

Share link:

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Editor's choice

Loading Editor's Choice articles...
Cryptopolitan
Subscribe to CryptoPolitan