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.
"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.