Peter Schiff: Bitcoin a Fraud, Strategy Will Probably Go Bankrupt
The foreign equities and gold bug investor with over a billion dollars in assets under management took a big swipe at Bitcoin and Michael Saylors BTC-accumulating finance company, formerly named MicroStrategy.
He said Strategy will go bankrupt over Bitcoin. But if this is reverse psychology, it must be working on Saylor. His company still hasnt stopped racing other firms for more BTC in whale-sized bites.
Peter Schiff Pulls No Punches on BTC in X Spaces Gag
To start off the program, Schiff said Bitcoins promoters sold it as a kind of digital gold, but it hasnt performed like the precious metal at all, so the marketing was a fraud.
The idea that its digital gold has been destroyed because it trades nothing like gold. Its just some kind of risk asset.
But, Bitcoins promoters did not say it would perform as an investment with ROIs like gold. They said it is similar in its economic properties to the metal because of its limited supply and the difficulty and cost of securing it.
While it is true that Bitcoins price lately has not traded like gold, thats because over timescales very relevant to individual investors it has performed fantastically better than the yellow metal.
Bitcoin vs. Gold ROIs 2009-10 to Present
INSIGHT: Golds growth is strong, but Bitcoins massive gains cant be ignored.
Gold just hit a new ATH of $3,310, while Bitcoin is consolidating. But when we zoom out, BTCs epic rise far outpaces golds performance.
Whats your prediction? pic.twitter.com/1OkHGXltp5
Coin Bureau (@coinbureau) April 16, 2025
Some fraud that would be to explain to a judge:
Sorry, we told the litigant that the product was like an instrument that delivered 230% ROI in 16 years since 2009, and it only delivered 2.82 billion percent since 2010.
On the X podcast, Schiff asked:
What purpose does Bitcoin serve? We got plenty of risk assets out there. Its a super risk asset thats going to go up faster than other risk assets. Based on what?
He added, At least a tech stock- theres the story there of future earnings that could materialize, youre buying a business that could earn money.
Bitcoin provides a banking service, which is traditionally a very profitable, high-growth business because everyone needs it every day in a market economy.
Moreover, Bitcoin does so in a way that is simple and fundamentally useful. It is proven to work reliably, fairly, transparently, and easily for anyone to use.
Bitcoins price was up 36% over the trailing 12 months in mid-April.
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