A well-known gold advocate denounced MicroStrategy’s investment plan to buy more Bitcoin and build its cryptocurrency reserve.
Peter Schiff, an outspoken critic of the first cryptocurrency, also criticized President-elect Donald Trump’s pro-crypto stance, arguing that it is hurting the country.
MicroStrategy Bitcoin investment strategy
MicroStrategy revealed that it has a $42 billion investment strategy to buy more Bitcoin In the next few years.
Analysts said that the American developer is known for buying a large amount of cryptocurrencies regardless of market fluctuations.
Reports stated this MicroStrategy recently purchased 55,500 Bitcoin With a value of $5.4 billion, which allows the company to strengthen its position in the cryptocurrency sector.
As of press time, MicroStrategy owns 386,700 Bitcoin worth over $36 billion, placing the company among the largest cryptocurrency holders.
Dangerous bet
Schiff criticized MicroStrategy’s continued buying of digital assets, denouncing the $42 billion investment plan to acquire more Bitcoin within three years.
A Bitcoin critic has called MicroStrategy’s Bitcoin investment plan a “dangerous bet.”
It has now been four weeks since then $MSTR It announced its three-year plan to spend $42 billion on purchasing #Bitcoin. MSTR has already spent $10 billion. At this rate, the three-year plan will be completed in about 16 weeks. Once you complete your purchase, expect both Bitcoin and MSTR to crash.
– Peter Schiff (@PeterSchiff) November 26, 2024
“At this rate, the three-year plan will be completed in about 16 weeks,” Schiff said.
He believes that the price rise resulting from MicroStrategy’s so-called “bold plan” will be short-lived, leading to a significant drop in the price of BTC and a decline in the value of the company. Share price.
Furthermore, Schiff argues that buying a company on a large scale only artificially drives up the price, noting that it could pose a problem for the company because it is putting all its eggs in one basket, which is not a smart concept in any investment.
BTC market cap currently at $1.88 trillion. Chart: TradingView.com
Schiff predicts that MicroStrategy may not be able to finance future purchases of bitcoin, echoing his view that the move could hurt the company and its shareholders.
On the other hand, Michael Saylor, CEO of MicroStrategy, defended the company’s investment approach, saying that they have no plan to sell their crypto assets in the near future.
Image: ETMarkets.com
Saylor said the company remains optimistic about Bitcoin’s future, and urged other companies to take inspiration from its investment strategy.
Historically, Schiff has been a vocal critic of MicroStrategy’s moves to buy Bitcoin.
Trump’s pro-crypto stance: Will it hurt the economy?
Schiff also criticized Trump for his plans Implement regulations Pro-cryptocurrency, arguing that it will weaken the country’s economic position.
“When the government picks winners and losers, it usually picks losers. Thanks to the Trump administration’s co-opting of Bitcoin, Wall Street is making huge gains by misallocating capital to Bitcoin and related companies that are destroying value,” Schiff said.
The staunch cryptocurrency critic believes the US will become weaker once it becomes a Bitcoin superpower.
Meanwhile, cryptocurrency supporters have dismissed Schiff’s views, saying they are among the stupidest posts ever.
Featured image from FXLeaders, chart from TradingView