TLDR
- Peter Schiff criticized MicroStrategy’s Bitcoin strategy, calling it a “fraud” and predicting the company’s eventual bankruptcy.
- Schiff challenged Michael Saylor to a public debate on the viability of MicroStrategy’s Bitcoin model during Binance Blockchain Week.
- MicroStrategy’s stock has fallen by over 19% in the past five days, partially due to Bitcoin’s recent poor performance.
- Schiff expressed doubts about Bitcoin’s long-term value, stating that MSTR’s reliance on Bitcoin will ultimately lead to financial failure.
- The recent decline in Bitcoin’s price below $95,500 has further concerned MSTR investors and contributed to stock losses.
Peter Schiff, a well-known economist and Bitcoin critic, has intensified his long-standing feud with Michael Saylor’s Bitcoin-focused company, MicroStrategy (MSTR). Schiff recently called MSTR’s business model a “fraud” and predicted that the company will eventually go bankrupt. Schiff took to social media, publicly challenging Michael Saylor to a debate at Binance Blockchain Week in Dubai this December.
In his post, Schiff expressed his concerns over MSTR’s strategy of accumulating Bitcoin. He claimed that MSTR’s entire business model is unsustainable. “Regardless of what happens to Bitcoin, I believe MSTR will eventually go bankrupt,” Schiff stated.
Peter Schiff Doubts MSTR’s Long-Term Viability
Peter Schiff has been critical of Bitcoin for years. He believes that MSTR’s decision to hold vast amounts of Bitcoin will not pay off in the long run. Schiff previously argued that Bitcoin’s price will drop significantly in the future, and companies like MSTR will face financial hardship.
“MSTR’s business model is a fraud,” Schiff said, highlighting the risk associated with the company’s heavy reliance on Bitcoin. He also predicted that the company’s Bitcoin holdings will devalue in the next market downturn.
Schiff’s skepticism is rooted in his belief that Bitcoin lacks intrinsic value. He maintains that the 21 million supply cap of Bitcoin is irrelevant. As a result, Schiff predicts that MSTR’s Bitcoin strategy will ultimately collapse.
Peter Schiff recently invited Binance founder Changpeng Zhao, or CZ, to debate tokenized gold versus Bitcoin. Schiff wants to compare the two assets to determine which better fulfills the role of money. CZ responded positively, expressing interest in the debate.
Schiff’s challenge followed his public criticism of Bitcoin’s price volatility. Despite Bitcoin’s recent rise in value, Schiff believes that it remains an unstable asset. He also warned that MSTR’s business model depends on high-yield preferred shares, which he claims will never be paid out.
The critic also stated that MSTR is nearing a “death spiral” due to its reliance on debt and dividend income. Schiff pointed out that MSTR has no obligation to pay dividends, leaving investors at risk.
MSTR Stock Decline Coincides with Bitcoin’s Struggles
Peter Schiff’s comments come as MSTR’s stock has seen a sharp decline over the past few days. The stock fell by more than 19% over the past five days and nearly 30% over the last month. Experts attribute the drop to Bitcoin’s poor performance over the past few weeks.
As Bitcoin’s price dropped below the critical $95,500 level, MSTR’s stock also suffered. Bitcoin recently fell to $92,890 on November 17, marking a significant dip in its value. While Bitcoin has since rebounded slightly to $95,384, its overall market sentiment remains weak.
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