Following the sharp drop in the price of Bitcoin (BTC), cryptocurrency critic and gold advocate Peter Schiff made harsh statements against both Bitcoin and MicroStrategy.
BTC’s decline of approximately 7.82% in the last 24 hours to $84,631 brought Schiff’s criticism back to the center of attention.
Schiff argued in his assessment that Bitcoin has no real use and that its value is based solely on belief. He argued that gold, on the other hand, has “objective and industrially real value” due to its physical properties such as conductivity, malleability, and corrosion resistance.
According to Schiff, Bitcoin investors’ failure to understand this difference is the determining factor in both BTC’s rise to $126,000 and today’s sharp pullback.
Schiff said crypto supporters have misinterpreted both Bitcoin and gold, saying that a lack of understanding of the market’s true dynamics fuels a HODL culture and causes investors to avoid selling on dips.
The Bitcoin critic also took aim at MicroStrategy CEO Michael Saylor and the company’s strategy. Schiff claimed Saylor was forced to sell stock not to buy Bitcoin, but to meet the company’s interest and dividend obligations. Schiff described this as “the beginning of the end,” calling MicroStrategy’s business model a “fraud” and Saylor “the biggest crook on Wall Street.”
Schiff argued that the mainstream financial media had been too lenient on Saylor and that the true state of MicroStrategy had not been properly conveyed to the public.
*This is not investment advice.