Peter Schiff Slams Michael Saylor’s Bitcoin Excitement

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As an analyst with over three decades of experience in the financial markets and a keen interest in emerging technologies like cryptocurrencies, I find myself intrigued by the ongoing debate surrounding Bitcoin as a strategic treasury asset.

Known economist and Bitcoin skeptic, Peter Schiff, has criticized Michael Saylor’s recent enthusiasm regarding the rising trend of companies adopting Bitcoin as a strategic reserve asset.

Michael Saylor, renowned Bitcoin supporter and head of MicroStrategy, has expressed enthusiasm over the increasing use of Bitcoin as a tactical reserve asset, in reference to X.

In a recent interview with CNBC, Bitcoin investor Bill Miller stated something along the lines of: More companies are announcing their intention to treat Bitcoin as a strategic treasury asset by including it in their balance sheets. This is what Saylor tweeted.

It’s inadvisable for companies to treat Bitcoin as a part of their treasury, as it lacks strategic value and is not an appropriate investment. Instead, they should distribute profits to shareholders as dividends, allowing them to decide how to invest their own funds if they wish to gamble.

— Peter Schiff (@PeterSchiff) July 30, 2024

While some may agree with Saylor’s positive views on Bitcoin, not all feel the same way. For instance, Schiff, a well-known critic of Bitcoin and advocate for gold, showed his usual skepticism in response. In a direct tweet, Schiff expressed doubt, stating that Bitcoin is not wise or suitable as a treasury asset. He suggested that companies should focus on paying dividends to their shareholders instead of risking shareholder funds by investing in such ventures. Essentially, he believes it’s better for individuals to gamble with their own money rather than the company’s resources.

Bitcoin enthusiasts undeterred

Despite Peter Schiff’s criticism, Bitcoin supporters should not be dissuaded. Many take Schiff’s views with a grain of salt. To provide some perspective, Michael Saylor started investing in Bitcoin back in 2020 as a means to combat inflation and serve as an alternative to cash. His company, MicroStrategy, is now one of the world’s largest public Bitcoin holders. As of June 20, it owns approximately 226,331 Bitcoins, which were acquired for roughly $8.33 billion at an average price of $36,798 each.

Over the weekend, Schiff was surprised to find out through his poll that approximately 87% of the over 11,000 Bitcoin owners who responded said they wouldn’t part with any of their Bitcoin, even if its price dropped by more than 99% to $120. They not only expressed a reluctance to sell but also indicated they would continue purchasing even as prices decreased.

Surprisingly, Schiff disclosed the primary reason investors are drawn to purchasing Bitcoin is its impressive history of strong returns.

Currently, when I’m typing this, Bitcoin is being exchanged for approximately $66,067. It peaked at almost $74,000 around mid-March, reaching new record highs.

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2024-07-31 17:29