thecryptobasic.com
Peter Schiff, a well-known Bitcoin critic and an advocate for gold, recently took a jab at MicroStrategy’s Bitcoin-focused strategy.
The recent remarks from Peter Schiff came as a response to a post by MicroStrategy’s Michael Saylor, which highlighted the company’s significant gains since adopting Bitcoin. Saylor’s post, shared to his 3.5 million X followers, stated that Bitcoin had empowered MicroStrategy to rise above the competition over the last four years.
However, Schiff challenged this notion, warning that the same strategy could lead MicroStrategy to crash below the competition in the coming years.
MicroStrategy’s Performance
MicroStrategy’s decision to incorporate Bitcoin into its treasury strategy in August 2020 has contributed to an impressive 995% increase in its stock price. This growth, nearly tenfold, highlights the impact of Bitcoin on the company’s market value.
In comparison, the Magnificent 7, a group of leading tech stocks including giants like Apple and Microsoft, saw a 194% increase during the same period. Meanwhile, the S&P 500, a broad measure of the stock market, rose by 59%.
Community Reactions
Schiff’s criticism of MicroStrategy and Saylor’s Bitcoin strategy has sparked varied reactions within the crypto community. Many users quickly pointed out that Schiff’s mutual funds have not performed as well, with some suggesting that he might be envious of Bitcoin’s success.
Notably, one commenter highlighted that Bitcoin outperformed gold by 49 times over the same period. Another questioned why Schiff’s prediction of a crash had not materialized in the past four years, while others emphasized that MicroStrategy’s performance, driven by Bitcoin, clearly surpasses that of gold.
Schiff’s Stance on Bitcoin ETFs
In a related criticism this month, Schiff expressed concerns over Bitcoin ETFs, arguing that they undermine Bitcoin’s decentralization and peer-to-peer nature. Schiff believes that Bitcoin ETFs make the asset more susceptible to seizure by authorities and less useful as a currency.
Interestingly, Schiff’s stance on this matter gained unexpected support from prominent figures in the crypto industry, including Cardano founder Charles Hoskinson. This agreement highlights a shared concern over the potential risks associated with Bitcoin ETFs, particularly regarding the true ownership and security of Bitcoin when held through these financial instruments.