Schiff vs. Saylor: Gold's Endurance Questioned
Veteran Bitcoin critic Peter Schiff has renewed his attacks on Bitcoin's long-term viability, this time targeting Michael Saylor, MicroStrategy's CEO. Schiff argues that Bitcoin's value, when measured against gold, reveals a prolonged bear market, pointing to a 24% drop since 2021, from 36.3 ounces of gold per BTC to 27.7 ounces.
Gold's Dominance: Schiff's Prediction
In a post on X, Schiff highlighted this decline, suggesting many investors misinterpret Bitcoin's performance by focusing solely on its USD value. He contends that Bitcoin's falling purchasing power relative to gold signifies a long-term downtrend, regardless of short-term price rallies. Schiff's stark prediction: “Gold is the Apex predator that will eat Bitcoin.”
This isn't Schiff's first attack on Saylor's Bitcoin strategy. He previously criticized MicroStrategy's heavy Bitcoin investments, warning of significant financial risks and potential bankruptcy if Bitcoin's price continues its downward trajectory. He notes MicroStrategy's 55% stock decline and rising debt levels as evidence of this risk.
Bitcoin's Stealth Bear Market?
Schiff frames Bitcoin's performance against gold as a 'stealth bear market,' arguing that while USD fluctuations mask the bigger picture, the gold comparison reveals consistent depreciation. He emphasizes gold's enduring value over millennia, contrasting it with Bitcoin's inherent volatility and speculative nature, questioning its long-term store-of-value capabilities.
Schiff directly challenges the 'digital gold' narrative surrounding Bitcoin, highlighting its lack of intrinsic value and its susceptibility to market manipulation. He believes history firmly favors gold's enduring appeal over digital assets.
However, Bitcoin's supporters remain unconvinced. A recent report indicates that 95% of U.S. spot Bitcoin ETF investors are holding despite a recent price drop. Despite criticism, MicroStrategy remains committed to its Bitcoin strategy, announcing plans to raise $21 billion for further Bitcoin purchases and operational expenses.
Codeum's Note: The ongoing debate underscores the importance of thorough due diligence and risk assessment in the crypto market. At Codeum, we provide comprehensive blockchain security services including smart contract audits, KYC verification, custom smart contract and DApp development, tokenomics and security consultation, and partnerships with launchpads and crypto agencies to help mitigate these risks.