Could Michael Saylor‘s push for US Bitcoin reserve assets signal the next big financial risk? Peter Schiff’s comments on Bitcoin caught the attention of legendary trader Peter Brandt.
Schiff sounds the alarm: Saylor wants a Bitcoin bailout?
As you have been following on Kriptokoin.com, Michael Saylor, co-founder and chief executive officer of MicroStrategy, has expressed the idea that the US government should buy an amount of Bitcoin equivalent to significant gold reserves. However, he faces some difficult questions after these statements. The idea, first proposed by Robert F. Kennedy Jr. was shared by Saylor on social media. However, these statements led to some raised eyebrows and criticism from prominent crypto skeptic Peter Schiff.
Known for being a gold advocate and critic of Bitcoin in equal measure, Peter Schiff accused the MicroStrategy CEO of indirectly asking for a government bailout for Bitcoin. Schiff says Saylor knew BTC was losing value and wanted the US government to step in and buy it, effectively putting American taxpayers at risk in what he calls a “pyramid scheme.” According to Schiff, a pyramid scheme occurs when people are persuaded to join the scheme by others who are already in the scheme. Money is taken from new members to pay returns to those who have been in the scheme longer.
Is Bitcoin really a Ponzi scheme?
Peter Schiff says Bitcoin fits this model because it has no intrinsic value or productive use. According to Schiff, this is different from traditional investments such as stocks, real estate, bonds or commodities like gold, which are valued for their tangible uses and potential returns.
Michael Saylor himself has not publicly said he wants a bailout, but his social media activity has got people talking. If the US government wanted to accumulate Bitcoin until its holdings equaled the country’s gold reserves, it would need to buy about 9.4 million BTC at current prices. That’s almost 45% of the total supply of BTC that will ever be mined.
Peter Brandt fires back at Schiff’s BTC comment
Legendary trader Peter Brandt took aim at renowned Economist Peter Schiff’s criticism of Bitcoin. Schiff, a gold bug and cryptocurrency critic, reacted to a specific comment made at the ongoing Bitcoin Conference, saying, “At the Bitcoin Conference, a man said that BTC is the world’s best kept secret. The pumpers have to at least make their lies believable. Almost everyone knows about BTC. There are 20,000 people at this conference. The biggest annual gold conferences have 500 people.”
Schiff’s article implied that the widespread recognition of BTC and the high attendance at Bitcoin conferences contradict claims that Bitcoin is a “secret”. Schiff also used the relatively lower attendance at gold conferences to highlight the hype surrounding BTC. Schiff’s comments caught the attention of Peter Brandt, who did not spare his response. “That’s because most of the gold bulls are dead,” Brandt responded, noting the stark contrast in attendance figures between BTC and gold conferences.
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