MicroStrategy's Bitcoin Announcement May Harm Its Shareholders, Says Peter Schiff, Here's How

News
Mon, 12/14/2020 - 13:23
article image
Yuri Molchan
Famous Bitcoin critic Peter Schiff believes that Michael Saylor has made a mistake by announcing MicroStrategy's plan to bet $650 million on Bitcoin, here's why
MicroStrategy's Bitcoin Announcement May Harm Its Shareholders, Says Peter Schiff, Here's How
Cover image via www.facebook.com
Read U.TODAY on
Google News
Contents

Gold bug and Bitcoin hater Peter Schiff is certain that Michael Saylor, who is at the helm of the MicroStrategy giant, made a mistake when he announced the company's plan to allocate its recently raised $650 million into Bitcoin.

The head of Euro Pacific Capital, Schiff, explains why.

"Michael Saylor made a mistake"

Peter Schiff critiqued the announcement that MicroStrategy would be acquiring Bitcoin with the eye-popping $650 million that the company raised by selling specially issued securities last week.

The gold lover and CEO of Euro Pacific Capital stated that this announcement may influence the Bitcoin market. Traders, he explained, may start accumulating BTC before MicroStrategy and drive BTC up.

He wrote that, later, those traders may dump BTC at a higher price, and shareholders of MicroStrategy would be left as the ultimate bagholders.

BTC
Image via Twitter

Related
Peter Schiff Says Companies Grabbing Bitcoin Don’t Rush to Part with Their Gold

"Gold is much more liquid than Bitcoin"

The gold expert stated that the gold market is much wider and far more liquid than that of Bitcoin. An announcement like what Saylor made would be a drop in the ocean and would not have any significant effect on the price.

However, Schiff reminded his followers that, as a rule, buyers keep their plans quiet and accumulate without announcing it to a wide audience, laying their hands on the asset as cheaply as possible.

Gold is a much larger market and far more liquid that #Bitcoin.  So such an advanced announcement would not have nearly as large an impact. But normally buyers would want to keep their intentions private, so they can buy as cheaply as possible.

As reported by U.Today over the weekend, Peter Schiff tweeted that the companies that are actively buying Bitcoin now are not in a rush to get rid of their gold to fund their new crypto bets.

article image
About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.

thecryptobuds