- Gold bug Peter Schiff slammed MicroStrategy’s debt-for-Bitcoin model as a “Ponzi scheme” dependent on endless speculative demand.
- Bitcoin dropped 5% to $86,500, underperforming the Nasdaq as Japanese bond yields hit a 17-year high.
- Schiff argues capital is rotating from “fake” digital assets to “real” commodities like gold and silver.
Peter Schiff, one of Bitcoin’s fiercest critics, has continued to slam the cryptocurrency amid declining prices. Bitcoin crashed by 5% in the early hours of Monday, returning below the $90,000 landmark to trade for $86,547 at the time of writing, according to data from TradingView.
Schiff Calls Bitcoin a “Fake Asset”
Schiff described Bitcoin as a “fake asset” other than a risk asset in his latest post. According to the renowned Bitcoin critic, the cryptocurrency’s latest decline is unusual for a risk asset. He compared BTC with NASDAQ, which fell by less than 2% from its record high, while Bitcoin dropped approximately 28% under similar circumstances.
Related: Peter Schiff Mocks Bitcoin After $97K Slide, Cites Gold’s 60% Surge
According to Schiff, Bitcoin’s behavior reflects something more than just risk-off play. He believes the ongoing situation consists of capital rotation from “fake” to real assets. In a separate but related post, Schiff attacked Strategy’s CEO, Michael Saylor, for claiming that MSTR’s business issues digital credit by selling preferred stock that pays 8% or 10% dividends if MSTR declares them.
Strategy’s Business, Ponzi or Not?
Schiff accused Strategy of having no income. According to him, the firm operated a Ponzi scheme with no other income apart from selling Bitcoin and could only pay dividends by selling more preferreds. That is an opinion that did not sit well with some crypto community members, one of whom outlined Strategy’s operational structure, clarifying that the project is not fraud, but a highly leveraged investment.
JGB, Gold, and Silver Dominate Risk Assets
Typical of Schiff’s Bitcoin criticism, he compared the cryptocurrency with Gold and Silver, alongside other mainstream digital assets. For instance, Schiff noted that the Japanese Government Bond (JGB) 10-year yield is at 1.84% and rising, causing investors to sell their risk assets.
Schiff further noted that stock futures are down alongside Bitcoin and cryptocurrency, while Gold was up by over $20 at the time of his post and trading for $4,240. Silver surged $1.20 over the same period to trade for $57.50.
Related: “MSTR Will Go Bankrupt”: Peter Schiff Challenges Michael Saylor to a Debate
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Source: https://coinedition.com/schiff-calls-bitcoin-fake-labels-microstrategy-a-ponzi-scheme/