Renowned economist and outspoken Bitcoin skeptic Peter Schiff took to X on October 9 to weigh in on the U.S. government’s impending sale of 69,370 Bitcoin, worth roughly $4.3 billion.
His post sparked lively responses from Bitcoin supporters and critics alike, reigniting debates over the virtual asset’s value.
Silk Road Bitcoin Up For Grabs
Schiff’s tweet follows a Supreme Court decision that cleared the way for the U.S. government to sell Bitcoin it seized from the defunct Silk Road marketplace. As a result, the government has announced its intention to liquidate the coins, which had been tied up in legal proceedings.
The Echelon Wealth co-founder, known for his preference for gold, seemed to sarcastically suggest that MicroStrategy CEO Michael Saylor should borrow $4.3 billion to buy Bitcoin.
“Every once in a while, the government does something smart,” he quipped, in what looked like a sly dig at Saylor’s Bitcoin-heavy investment strategy.
Since 2020, Saylor has led MicroStrategy to acquire billions in Bitcoin, a move that Schiff has previously criticized as a risky gamble. On September 20, the company raised over $1 billion and used part of the proceeds to buy 7,420 BTC. That purchase brought MicroStrategy’s total haul to 252,220 coins, currently valued at about $16 billion.
The radio personality’s latest comment attracted responses from both sides of the Bitcoin debate, with advocates for the cryptocurrency quick to challenge his remarks.
One user, Henry Scavacini, highlighted Bitcoin’s six core properties—durability, portability, divisibility, fungibility, scarcity, and acceptability. They also pointed out a seventh: immutability, which is unique to blockchain-based assets. This sparked further discussion, with others joining in to defend Bitcoin’s standing as “hard money.”
Schiff Adamant on Gold
However, despite the wagon circling, Schiff remained firm in his stance, stating, “It’s missing the most important [property]. Actual real value.”
His dismissal of Bitcoin’s value led to more pushback, with users like Tommy Carver reminding him that the consensus of the market currently values Bitcoin at over $62,000. Another user added that value is subjective and determined by the usefulness of an asset to those who hold it.
This online exchange between the veteran stockbroker and Bitcoin supporters highlights the long-standing ideological divide between traditional gold bugs and Bitcoin maximalists.
Schiff has repeatedly criticized Bitcoin, arguing that it lacks the tangible value of gold. Recently, he said that an obsession with Bitcoin was making investors miss out on gold’s record-breaking performance.
Additionally, he claimed that the cryptocurrency was helping cover policy errors made by the U.S. Federal Reserve, mistakes that would have come to light had more attention been paid to gold’s market performance.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!
